For young families these days, owning a home with more than three bedrooms is much more difficult than it used to be.
Baby boomers without children at home now own twice as many large homes as millennials with children, according to data released this week by Redfin, a big change from just a decade ago. It is.
A real estate broker's analysis of the latest 2022 census data shows that 28.2% of large homes in the U.S. are owned by baby boomer empty-nesters, and 14% are owned by millennials with children. It has been found. At the last census 10 years ago, young families were just as likely to own a large home as they were to empty nest.
Redfin estimates that Millennials (26 to 41 years old in 2022) make up the largest share of the U.S. adult population at 28%, followed by Boomers (58 to 76 years old two years ago) at 27%. He pointed out that it was followed by a narrow margin. Gen
The data also shows that older Americans now own larger homes at a higher rate than when the last census was taken, and younger families own fewer homes.
In 2012, 16% of homes with three or more bedrooms were owned by the “Silent Generation” (aged 67-84 at the time), while Generation X (aged 32-47 at the time) with children Owned a house with three or more bedrooms. It has an even larger share at 19%.
Redfin analysts determined that there are both current and historical reasons why baby boomers own large, “oversized” homes.
First, boomers currently have little financial incentive to sell their homes. The majority of them (54%) own their homes outright, so taking out a mortgage would be costly at today's high home prices and interest rates.
At the same time, nearly all baby boomers with mortgages are paying significantly lower mortgage rates than they currently are (approximately 6.66%, according to Freddie Mac), so downsizing will likely result in smaller homes. This would mean paying the same amount every month. There is little or no capital.
“It's unlikely we'll see a lot of large homes coming onto the market anytime soon,” said Sheharyar Bokhari, senior economist at Redfin. “Logically, empty nesters are the group most likely to sell their large home and downsize; they no longer have children living in the home and don't need as much space. The problem for young families who want their parents to build big homes is that baby boomers don't have much incentive to sell, for financial or other reasons.
“They typically have lower housing costs and the majority of baby boomers are still in their 60s, so they are still young enough to be able to take care of themselves and their homes without assistance,” Bokhari explained. “Still, some baby boomers are ready to downsize to condos or move to new locations after retirement, and the lock-in effect on mortgage rates is starting to ease. Even if there won't be a flood of inventory, there will be a flood of inventory.'' ”
