The baby boom generation is heading towards retirement, which means a sizable slice of the housing pie could be hitting the market soon. And demand is not shaping up to meet the expected supply.
This according to a recent article in The Atlantic Cities, which suggested that baby boomers, who were largely responsible for the growth in larger, big-lot single family homes that defined suburbia, are going to be looking to downsize as the move into retirement over the next ten years. This means selling those suburban homes to the next generation of families.
The only problem? That next generation of households with children has a larger percentage of buyers who are inclined towards condos and townhouses (around 25%, according to the article).
A growing lower class unable to afford the large suburban homes will further exacerbate the problem.
So when’s the next housing crash going to happen? The article points to 2020 as the year to keep an eye on.
Read the entire piece here.
Credit: The Atlantic Cities