Fewer properties are on the market because owners are staying in their homes longer than in the past
Over the last decade, homeownership tenure has doubled from four years to nearly eight. As a result, fewer homes are on the market, and young buyers are being boxed out.
Through an interview with HousingWire, Daren Blomquist, senior vice president at ATTOM Data Solutions, listed three reasons why inventory is so limited, particularly for Millennials.
Along with the increase in ownership tenure, Blomquist notes that homeowners capitalized on historically low interest rates by refinancing, locking them into their current homes. With mortgage rates rising, these owners are even less motivated to sell their homes.
Also, investors have emerged as competition for Millennial buyers. Groups are buying houses, renting them, and raking in the profits.
So yes, Millennials simply might not want to buy a home, but there is also a gaping hole in housing inventory that’s stopping them. And young aspiring homeowners aren’t the only group dealing with this. Lynn Fisher, the MBA’s vice president of research and economics, recently said there will be about a 13 million to 16 million increase in additional households in the U.S. over the next decade.