by Candyd Mendoza
Millennials wait longer and pay more for their homes than young people in previous eras, according to a report by Freddie Mac.
According to Freddie Mac, many longtime homeowners are actually exacerbating the inventory shortage. The report revealed that seniors born after 1931 are holding on to their homes, shutting millennials out of the market.
Most of them, older Americans specifically, chooses to age in place because they are contented with their communities and their homes, as well as their quality of life.
“We estimate that approximately 1.6 million more senior households are staying in place than would have been the case if they behaved like older generations of homeowners. To provide context for this magnitude, the Urban Institute recently estimated that 3.4 million millennials are missing out on homeownership,” the report said.
The report anticipated that the number of homes held back by seniors will grow, meaning even more owner-occupied units will remain unavailable to millennials.
“‘War Babies’ (1942–1947) and ‘Baby Boomers’ (1948–1959) are also expected to stay in their homes at higher rates, and thus contribute even more to the number of houses held off the market,” the report said.