As our readers are aware, the Bodeen Team has been sharing for awhile about a housing shortage. It may be more chronic than anyone wants to believe. We’ve been exhorting prospective first-time buyers to get into the game. This is true even though we’ve passed through a huge home price increase and high rates.
One of our concerns has been the acquisition of single-family homes by large corporations. They are buying and holding (read: renting). Builders, especially in Phoenix Metro, are building thousands of single-family detached homes and condo/apartments: to rent! Some of these builders then convey the project to the corporations. The obvious result of this certainly helps supply a needed rental market but does nothing to help folks affordably get into homes to own.
We’ve continued to report ad nauseum about how our high interest mortgage rates are giving prospective sellers zero incentive to sell and buy. They’re (we’re) staying put. What we’re left with is the basic rules of life to gain inventory to sell, such as death and divorce.
Then, I ran across an interesting article from Stacker Media, strongly suggesting that we Boomers are the ones hoarding housing.
Stacker points out that the Boomer generation (those born between 1946-1964), though not the largest generation by population, nonetheless controls the lion’s share of America’s real estate market and has for the past quarter century.
The article points out that the Boomers, especially the wealthy and educated, are living longer and are staying in their homes longer – because they can. Boomers are now aged between 59 and 77. According to a 2022 University of Michigan survey, 90% of adults between the ages of 50 and 80 say its important for them to age in place.
As a Boomer and a career real estate professional, and one who owns multiple properties, I’m certainly bullish on owning real estate, but to be honest, I never thought I’d see the day approaching when affordable options are all gone. I’m greatly sobered for our younger generations.