Are Baby Boomers to Blame for Low Housing Inventory?
There are not enough houses to go around and I think I know why.
Some have suggested the pandemic has caused the low inventory in housing, but with interest rates so low and houses selling above asking, why would any homeowner not want to sell during this time? One known statistic is that the median tenure of living in a house has been steadily increasing and is up to 10-12 years of tenure in a home. The highest it has been in some time. Some data supports that my parent's generation (the baby boomers) are STAYING PUT as that generation is approaching retirement age. Plus, with interest rates so low, refinancing a home has been a great way to decrease your monthly payment. I know, I just refinanced on mine, pulled cash out, and lowered my monthly payment.
So what does this mean for the housing market going forward? Is this analysis accurate or are there other primary factors to consider?
Thoughts?