Right now, Millennials are the largest cohort of homebuyers in America.
And even though they’re waiting longer to get married, start a family, and buy a home… and they’re more likely to skip buying a starter home and opt for a larger property…
They have almost ZERO interest in the massive McMansions the Baby Boomers built. Those behemoths cost a fortune to maintain, they typically lack the desirable open floor plans and high-end amenities Millennials want, and they’re usually located in hellish suburbia, far away from the hip neighborhoods and fun activities.
This is the #1 problem real estate faces right now, right alongside being completely unaffordable.
According to Realtor.com, large, single family homes – which range from 2,900 square feet to 4,000 square feet – are the largest 25% of all homes listed on its site. Yet they get 12% to 45% less views than the typical home in each market! Also, these homes are selling up to 73% slower.
Besides, even if Millennials wanted to buy these McMansions, they’d be hard pressed to afford it…
The average college graduate in 2016 owed $37,172 in student loans.
And they’re still new to the workforce so their wages are capped by their lack of experience, all of which makes it near impossible for them to get bank approval for outsized mortgages.
This has led to limited supply in the housing market, which has pushed prices higher.
There isn’t a housing shortage. There’s a shortage of affordable housing in desirable areas.