Unlocking Housing Opportunities: 20M Homes Available as Older Americans Downsize
In a world where the demand for housing is high and supply is scarce, a glimmer of hope emerges as older Americans make the decision to downsize. With approximately 20.9 million households fitting the definition of “empty nesters” in 2022, the potential for these vacant homes to alleviate the housing crisis seems promising. But is this the solution we’ve been waiting for?
Empty Nesters Not Where Younger Generations Want to Be
According to Orphe Divounguy, a senior economist at Zillow, the homes left behind by empty nesters may not be the answer to our housing shortage. These individuals, aged 55 or older, who have lived in the same home for a decade or more, often reside in more affordable markets. Unfortunately, these locations do not align with the preferences of younger generations, who are gravitating towards expensive coastal job centers like San Jose, Austin, and Denver.
New Construction: The Real Solution?
So, what is the key to unlocking affordable housing opportunities in the areas that need it most? Divounguy suggests that new construction is the only viable solution. However, factors like rising building material costs, lot size requirements, and lengthy project reviews pose significant obstacles to meeting the growing demand for housing.
Lowering costs for builders, revising zoning laws, and expediting permit approvals are crucial steps towards bridging the gap between supply and demand. By learning from less regulated regions in the South, where builders have embraced density to meet buyers’ needs, progress can be made in creating affordable housing options.
Take Action Now: Solutions for a Brighter Future
The path to improving housing affordability and accessibility lies in our ability to adapt and innovate. By addressing the challenges faced by the construction industry and implementing strategic changes, we can pave the way for a brighter future for all generations. Let’s work together to build a world where everyone has a place to call home.
