Millenial Competition?

January 3, 2020

This year we will probably witness the full realization that the USA has under-built smaller, more affordable housing in the MILLIONS. One big miscalculation by developers focused entirely on larger, higher-priced homes, is that there is a much larger audience than merely first-time/Millennial homebuyers looking for these homes.
 
Yes, it is true the is a growing number of the 83.5 million Millennials in the USA seeking entry-level smaller homes to get started in life and this is an enormous, highly potent audience for these homes that are often overlooked: Baby Boomers. There are 77 million Baby Boomers and many of them ALSO out looking for smaller, more manageable, more affordable homes as they become empty-nesters and many live in houses much too large for their needs or wants. Theirs is a desire (not urgent need) for a smaller, lower-priced house, and they often have the greater means to buy. Often their mortgages are paid off. Often their existing homes are worth much more than their budget for a new home. Some are even looking to buy TWO of these smaller homes in different locations to replace their one larger, more expensive ones.
 
So while it's certain Millennials are competing with one another, it's important to recognize this other potent competitor (not to mention a third competitor-individual and institutional investors- who see great opportunity in being landlords to this audience!) If you live in an area that makes building too costly and difficult (un-necessarily), get involved politically. We need LOTS more of these homes!

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