Why those in real estate say homes will be in short supply, and why they believe millennials are to blame
We millennials are often categorized as the flighty, entitled generation who want things on our own terms and expect to live with mom and dad forever. However, a real estate brokerage company has taken a stand to say those unfair stereotypes simply aren’t the case.
Instead, we’re cancers to society for a completely different reason. The headline of their press release about the study: “Persistent Housing Supply Shortage is Yet Another Thing to Blame on Millennials, According to Redfin Survey.” perfectly states why we suck so badly…
- We’ve got it too good: “With home loans so cheap, millennial homeowners are privileged to inherit some of the lowest borrowing costs in modern history. Rock-bottom fixed-rate mortgages will make it easier for young homeowners to build equity compared to earlier generations.”
- We’re always looking for opportunity: “Overall, homeowners are staying in their houses longer. In fact, housing tenure has doubled in the past 15 years, according to Redfin analysis. But millennials are holding onto their youthful wanderlust. Job opportunities and growing families will drive them to trade up or move on.”
- We’re more entrepreneurial: “Once they move, 28 percent of millennials plan to rent out their home rather than sell it. By comparison, only 4 percent of homeowners 55 and older want to be landlords. More popular alternatives for older homeowners are selling or passing the home onto relatives.
Because we’ll be renting out our starter homes for profit rather than selling them to companies like Redfin, we’ll further deplete the already ailing housing supply, and we’ll get rich while we do it. Not too bad for a generation of failure-to-launch basement dwellers, right?
However, Redfin is talking about the fraction of millennials who already own homes. Only 34 percent do, according to the most recent Census data. Most of us are still stuck renting, thanks to the student loans our parents encouraged us to take out so we could graduate into a tanked economy and fight to get a career in a job market they refuse to exit.Those factors also mean we’re marrying and having kids later, and have less need for houses.
So I guess whether we’re slumming it with the ‘rents or hoarding the housing market for ourselves, we’re stealing money from companies like Redfin. So go ahead, put the blame on us. We’re use to it already.