According to a recent Bloomberg article by Prashant Gopal, millennials are being pushed out of the housing market because Baby Boomers just wont sell—and this is causing issues between the two biggest generations in history.
Fifty-three percent of U.S. owner occupied housing is currently taken up by people ages 55 and older, which is up from 43 percent since 2007. Millennials from 18 to 34 only make up 11 percent of the share. To put that in perspective, baby boomers inhabited almost double that amount when they were in the 18 to 34 bracket.
Apparently, a big factor to this issue is public policy. According to Bloomberg, longer standing residents get property tax exemptions that keep them from moving. Additionally, zoning rules are keeping contractors from building apartments that are attractive to Baby Boomers or senior living facilities in other parts of town.
“The system is gridlocked,” Dowell Myers, Professor of Urban Planning and Demography at the University of Southern California told Bloomberg. “The seniors aren’t turning over homes as fast as they used to, so there are very few existing homes coming online. To turn it over, they’ll have to have a landing place.”
One looker in North Philadelphia has tried to find a home for over a year, but with no luck, has started to “cold call” in nearby neighborhoods. He has tried sheriff’s sales, bidding wars, and left many notes in people’s mailboxes. However, in these neighborhoods, people don’t want to budge unless there’s at least 7 digits sign next to the dollar sign.
“It’s inevitable for me to be perceived as an outsider,” 23-year-old Jake Yanoviak said to Bloomberg. “But I’m not trying to change the community. I’m trying to contribute in positive ways and be a neighbor.”
To find out more about Yanoviak and the current market, click here.