Affordable Starter Homes In Short Supply For Millennials

by David Grasso, GenFKD

Millennials are hanging out at Mom and Dad’s house for as long as they can, and it’s largely due to a number of factors, one of which is a shortage of affordable starter homes. Today, 40 percent of millennials live with their parents, siblings, or other relatives, with most analysts blaming economic barriers to household formation.

Generation not yet

In reality, as we covered in an article earlier this week, affordability is not the only reason behind millennials living at home, There are formidable cultural shifts that have occurred in recent years that have altered the traditional timeline for reaching adulthood. Overall, as life expectancy has gone up, people are growing up slower, and delaying many of the milestones that constitute a regular adult life.

We put off moving out, marriage, and procreation because it’s become socially acceptable and mainstream to wait until you’re well into your 30s to embark on those life-altering endeavours. As a result, many of us are still living at home relishing in what remains of our youth, and building closer relationships with our parental units than previous generations.

Let’s talk economics

Beyond our bouts with immaturity and our desire to remain Toys“R”Us kids forever, there are compelling economic reasons that are keeping millennials confined to living with blood relatives. A few years ago, you might have pinned the blame squarely on a tough job market, but that’s now improved a great deal. Although millennial incomes still remain low, we face yet another problem: the lack of affordable starter homes in nearly every metro area.

The glut of luxury housing everywhere

It appears that developers love building copious amounts of amenity-rich housing all over the country, seemingly targeting the…

 

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