A big part of the reason why small houses are in short supply right now is that two major demographic groupings are competing for the same houses.
The older Baby Boomer generation is looking to downsize into easier-to-maintain homes. This is conflicting with a surge of Millennial buyers looking for their starter homes in an increasingly fierce market.
According to the National Association of Realtors, about 20% of real-estate purchases in 2020 involved buyers 55 and older downsizing. Older generations like the boomers are increasingly wanting to “age in place,” by living in their current home instead of moving into other retirement facilities.
The Wall Street Journal published the following article on the issue:
Click to Read: “As Boomers Downsize, Competition Grows for Simpler-but Not Always Smaller-Homes”
