Why Seniors Are Taking the Heat for the Housing Shortage
Seniors choosing to age in place—staying put in their current homes—are creating a barrier to young adults buying their first homes, according to Freddie Mac’s February Insight. About 1.6 million existing homes are being held off the market due to seniors’ decision to age in place and remain in their current home, the report notes.
Researchers note that those 1.6 million units are roughly the same as the number of new single-family and multifamily housing units built each year, and it represents more than half of the current shortfall of 2.5 million housing units, which Freddie Mac has estimated is missing from housing market inventories to accommodate population growth.
“We believe the additional demand for homeownership from seniors aging in place will increase the relative price of owning versus renting, making renting more attractive to younger generations,” warns Sam Khater, Freddie Mac’s chief economist.