Fifteen years ago, Baby Boomers were building large, sprawling, multi-bedroom houses in states like Arizona, Florida, and the Carolinas. Now they're looking to downsize, reports the Wall Street Journal.
But their houses either won't sell or are selling at steep price cuts. Young people aren't interested in buying their homes.
"Homes built before 2012 are selling at steep discounts — sometimes almost 50%, and many owners end up selling for less than they paid to build their homes," Candace Taylor wrote in The Wall Street Journal. "These days, buyers of all ages eschew the large, ornate houses built in those years in favor of smaller, more modern-looking alternatives, and prefer walkable areas to living miles from retail."
Interior design is also important to Millennial buyers, says Taylor.
"Design trends have shifted radically in the past decade," Taylor wrote. "That means a home with crown moldings, ornate details and Mediterranean or Tuscan-style architecture can be a hard sell, while properties with clean lines and open floor plans get snapped up."
We know that Millennials prefer minimalism, low maintenance designs, and open floor plans. These are often not found in older homes. Many also prefer homes that do not need renovations for plumbing and electrical issues.
Buying a house is also a challenge. Business Insider reported that Millennials are likely to pay 39 percent more than boomers who bought a home in the 1980s. Record levels of student debt also plague the generation.
This could be changing, however. Data from the Census Bureau shows home ownership rose to 64.8 percent in the fourth quarter of 2018 - a four-year high, and driven primarily by younger buyers. The data also shows that the increase is largely due to renters becoming buyers.
We will see what happens.
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