According to CNBC, Baby Boomers are staying put in homes, aggravating the already low housing stock and preventing younger generations from buying.
"Baby Boomers have to live somewhere, but they are having a hard time downsizing and finding that available inventory,” Svenja Gudell, Zillow's chief economist said. “And so it's tough for people to move into [Baby Boomer’s] homes and that is causing that disruption in the normal 'move-up' market."
According to U.S. Census data, there were 83.1 million millennials born between 1982 and 2000, while 75.4 million Baby Boomers were born between 1946 and 1964. Millennials need affordable entry-level homes, while Boomers need downsizing options.
Sales of homes costing less than $250,000 have fallen because of declining supply, according to the National Association of Realtors. With nowhere for these demographics to move, the housing market will continue to get tighter.
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