As More Seniors ‘Age in Place,’ Younger Generations Must Delay Home Ownership
February 6, 2019
Much has been made of Millennials’ lower rate of homeownership. While factors like affordability and student debt keep many young people renting for longer, availability is a key factor. A new report from Freddie Mac shows that fewer homes are available because older generations are less willing to sell their homes, choosing to “age in place.”
The report finds that seniors born after 1931 are staying in their homes longer, leaving fewer homes available to younger buyers. An estimated 1.6 million homes were held back from entering the market through 2018. This amounts to about one year’s supply of new construction.
Freddie Mac says that more seniors are able to hold on to their homes because of advancements in healthcare make staying in their homes easier, while also noting that the current generation of seniors has a higher level of education than previous generations.