Seniors Holding on to Homes Could Have Lasting Impact on Housing Market
Several news feeds are reporting that a well-intentioned mom has been working her way through Towson University speaking with female students, hoping to find a date for her son. She is apparently approaching young ladies that she approves of and showing them a picture of her son. University police are trying to identify the lady. There’s nothing criminal about what she’s doing — they would just like her to stop.
A quick review of the names of male students who have withdrawn from school since the story broke might lead them to identifying the woman. The rest of the male students on campus seem to have a new found appreciation for their moms’ little quirks.
If current trends hold, those moms may be willing to settle into their homes as aging in place becomes more common. Current grandmas and grandpas, that have for several generations moved out and on for whatever reason, seem content where they are. A couple of reasons appear to be the improving health and well-being of people as they age, and possibly the rise in popularity of reverse mortgages, which some may rely on for income.
Freddie Mac estimates that aging in place accounts for about “1.6 million houses held back from the market through 2018.” That represents “about one year’s typical supply of new construction, or more than half of the current shortfall of 2.5 million housing units” to meet demand.”
That strain on demand is something that is not likely to change anytime soon and could have lasting impact on the way young people enter and move through the housing market. New construction costs make building profitable starter homes a difficult proposition for many builders, and older homes are not coming on the market as frequently as they have in the past. This change in plans for many older people could have lasting impact on the housing market.