Millennials will undoubtedly “drive the growth of aggregate housing demand’.
But at what price?
We’ve already agreed that the majority of baby boomers will be fine, and age in place. After their demise, the disposition of the house can be debated, but it’s really the same argument. The heirs who are comfortable will keep the family estate to occupy or rent, and the desperate heirs will sell it.
Apparently there are about as many millennials as boomers – roughly 75 million.
Will there be as many millennials who are ready, willing, and able to pay today’s prices – or most-likely higher prices – to soak up the supply of desperate homes being sold?
Below is the latest chart on how they feel. About half (56%) are worried about the cost of housing – at least they are paying attention.
What about the rest?
Either the other 44% plan to be rich and don’t worry about the cost of housing (in which case we should be covered)…..or they have already given up hope.
Click on image to enlarge slightly.