Baby Boomers are somewhat to blame for continued housing inventory shortages. Boomers are reluctant to sell which leaves Millennials, also known as Generation Y, with fewer properties to choose from. The new Housing Shortage Study from realtor.com mentioned there is data behind the shortage of homes.
Boomers hold a 78% stake in homeownership compared to the 41% among Millennials. Boomers hold onto majority of homes and 85% of them indicated they are not planning on selling anytime soon. This is proving to be a massive dilemma for Millennials because it removes nearly 33 million properties from the market, most of which are urban condos and suburban single-family homes. These two property types are the most popular choice among Millennials.
Many Boomers are content with life and see no reason to sell their home. According to the study, 72% of Boomers said their current home meets their family needs, compared to Millennials who answered the same at 52%.
The impact Millennials have on the housing market is far reaching as they make up 60% of total homeowners who intend to sell their home within the next year.
“Our survey data reveals that we may see more of these [Millennial] homes hitting the market in the next year, but whether these owners actually list will depend on whether they can find another home,” realtor.com Chief Economist Danielle Hale said.