Single Home Buyers & the Real Estate Market at Odds
Since 1980, single households have risen by 17.9 million. Of those in 2020, 39% were baby boomers, 19% were millennials, 19% were Gen Xers, and 3% were Gen Zers.
While the number of singles purchasing homes are rising, the housing market is leaving small pickings for them to choose from. The supply of entry-level housing of up to 1,400 square feet is near a 50 year low. Len Kiefer, Deputy Chief Economist of Freddie Mac, explains, “We’re just not building that many smaller homes […] there’s not that much new supply coming online, so the existing supply – which is aging – is fiercely competed over.”
These home seekers aren’t necessarily new homeowners either – single homebuyers are realizing that they’re not only having to compete between first-time homebuyers, but they’re also having to scramble and search for the home that’s in their price range.
Single homeowners are being squeezed out of the current towns they’re in; due to the hot market, many homeowners feel priced out and are moving to cheaper suburbs where they can work remotely.
Market experts will continue to monitor the current housing situation.
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