Glut, Glut

We don’t want your stinkin’ homes. So sayeth millennials. To be more accurate, they can’t afford our stinkin’ homes and even if they could afford them, they hate the location.

Nine million homes are projected to go on the market between now and 2027. As boomers die or age out, the homes come on the market at a time when younger generations are looking for smaller homes in more urban locations. Locales with declining populations in the rust belt or in retirement communities are the last places younger would be buyers will be looking.

Then there’s the affordability problem. Millennials and Gen Xers have more debt and financial stress than almost any prior generation. About 70 percent of millennials and around 50 percent of Gen Xers surveyed indicated they would like to buy a house one day. Less than half of them are actually saving to buy. Eight percent of millennials and 23 percent of Gen Xers surveyed think they will never own a home.

So what is going to become of these nine million homes? Turn them into baby boomer museums/monuments? Maybe they will hate the location, but if mom and dad gift their home to a child or grandchild, will they say no? The renters among them who are put off by the costs of home ownership probably will take a pass on the deal. But others may recognize that life out in the burbs isn’t so bad if you don’t have a mortgage payment. That savings could offset the cost of Ubering back and forth to the city for entertainment and to see their rich friends who could afford houses there.

This projected housing glut has a familiar ring to it. Not only do younger generations not want our houses, they also do not want all of our stuff. The china settings for 12, the crystal, flatware, jewelry, artwork, the furniture and the damn tchotchkes – all of it is going begging at garage and estate sales. It’s stuff alright. The stuff of nightmares. We can’t give away “brown furniture” to younger generation minimalists.

Maybe the best advice then is to start downsizing now. Sell the big house and furnish the new smaller abode with the kind of furnishings a millennial would want. They will be glad you did.

Jay Harrison is a graphic designer and writer whose work can be seen at DesignConcept and at BoomSpeak. He's written a mystery novel, Head Above Water which can be purchased on Amazon here. You can also visit his author page here.

Mine. No – It’s Mine

There’s this sense that millennials and baby boomers are at odds with each other, but I’m not sure how real that is. Are baby boomers really standing in the way of millennials? In the workplace we may be hanging on to our jobs but millennials seem to be doing quite well when it comes to taking the reins in management positions and it’s hard to ignore their growing dominance in the worker hierarchy.

When it comes to seeking shelter, however, millennials and boomers are competing for the same kind of housing for vastly different reasons. And the situation is exacerbated by the historically low housing inventory that is typical throughout the country right now. Until the residential construction industry ramps up the inventory of 2,000 square foot and under homes, millennials and baby boomers will be jousting for the same properties.

Millennials are looking for 1,800 square foot starter homes and baby boomers are looking for 1,950 square foot downsized homes, so essentially they want the same house. Millennials seek affordability while boomers want a more compact lifestyle. Millennials make up 42% of all homebuyers and the median age millennial (33 years old) makes up 56% of this country’s first-time homebuyers. They may dominate the market by their sheer numbers, but the baby boomer has the cash from the sale of their large home, so they can often bid up the price beyond the millennial’s budget.

Out of frustration with this imbalance, millennials are either deciding to rent or looking at larger, less affordable homes where they won’t be in competition with boomers. If they are thinking of starting a family, the larger home also eliminates the need to trade up after 5 years in the starter home.

If this competition for housing seems disturbing to anyone, particularly baby boomers, let’s not forget that millennials younger than the median age of 33 are still quite likely to still be living under their parents roof because they cannot yet afford even to rent their own place. When you look at it that way, some baby boomers are just as locked out of the smaller house market as their offspring. So who is house blocking who?

Jay Harrison is a graphic designer and writer whose work can be seen at DesignConcept and at BoomSpeak. He's written a mystery novel, Head Above Water which can be purchased on Amazon here.