00:00Baby boomers are just ruining the housing market for younger generations. People over 55 own over
00:05half the homes in the United States, which is a lot, but it's kind of fine because older people
00:09tend to be wealthier and own their homes. The problem is the types of homes that they own and
00:14the fact that they're never going to downsize. According to the survey, baby boomer empty nesters
00:18own twice as many of three bedroom or bigger homes compared to millennials. So these are empty
00:23nesters who don't need these large homes owning twice as many as millennials who have families
00:28and need bigger houses. And unfortunately, this is not going to change. Over 40% of baby boomers say
00:34that they never plan to sell their homes. To be fair, this isn't all their fault. Given the direction of
00:39mortgage rates over the last couple of years, it would cost most boomers more money in terms of
00:44monthly payments to downsize than to just stay in their homes. But it also reflects an increasing
00:49trend where older Americans want to age in place and just stay in their homes. And all this stuff
00:54together is one of the major contributing factors to why homes are just so unaffordable right now.
00:58With fewer traditional family style homes on the market and a huge massive millennial population
01:04all competing for these fewer homes, that drives up prices. And although construction has picked up a
01:09little bit in recent years, it's just not fast enough to alleviate the problem. I think this really
01:13only gets better when mortgage rates come down to like five or five and a half percent. At that point,
01:18most boomers will be able to downsize their home and actually save money rather than spend more money.
01:23Until then, family homes are probably going to remain hard to come by.
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