Young Americans have been quite vocal in their frustrations with the nation’s housing market. Prices are too high, mortgage rates are through the roof, and there aren’t even enough houses to go around.
But while the majority of Baby Boomers have already paid off the houses they bought for a fraction of the cost decades ago, they’re not happy either. Many say that there simply aren’t enough options for senior citizens, and it is negatively affecting the elderly and the entire housing market.
California Couple Explains Why Boomers Aren’t Happy with the Housing Market
Deborah Frieden and her husband have lived in Lake Merritt, Oakland, California, for more than 36 years. They bought their three-bedroom family home in the late 1980s and successfully raised their family there, but now, it’s simply too big for them.
Now in their 70s, the Friedens say that the large home is becoming impractical. From struggling to use the stairs to keeping up the landscaping in the spacious yard, the couple says they just can’t handle such a big space anymore.
Looking for a Smaller Space
The Friedens paid only $300,000 for their home and paid off their mortgage years ago. And as of this year, the house is worth anywhere between $1.6 and $2.2 million, so technically, the couple has plenty of money to move into a home that better suits their needs.
However, while searching for an appropriate condo in the Oakland area, the Friedens realized there was really nothing available for them.
Boomers Need Accessible Housing
For most seniors, one of the most important factors when looking for the perfect home is its accessibility.
The Friedens knew they needed a building with an elevator and a unit without any stairs. But many of their friends who live in or will soon use a wheelchair also had to look for spaces with large doorways and low cabinets.
Finding a Home With Amenities Nearby
In addition to finding a home with the accessibility they need inside, many Baby Boomers like the Friedens are also hoping to find somewhere that is within walking distance to at least a few stores or parks.
As Mrs. Frieden explained, “It would be crazy as a senior citizen to move somewhere where then I have to take my car to shop.”
Moving From a House to a One Bedroom Apartment Is Impractical
There’s also the space factor; although many Boomers are looking for something smaller than their family home, they still don’t want to move into a tiny one-bedroom, or worse, a studio apartment.
The Friedens wanted at least a two-bedroom condo with space for a small office or a guest room for family visits. And while they were ready to say goodbye to their large, tedious yard, they were still hoping for a courtyard or balcony where they could enjoy a bit of fresh air throughout the day.
All the Condos Available Seem Geared Toward the Younger Generations
However, the Friedens couldn’t find anything that met these fairly simple needs. Instead, they were shown one-bedrooms in walkups, far from town, without any outdoor spaces.
As Mrs. Frieden explained, “They feel and seem like they’re built for young people. They even market, ‘the greatest thing about our complex is the gym and the shared courtyard, shared rooftop environment, the bike racks’ — all of these things that might not be first on the mind of a senior.”
Developers Are Trying to Get the Most Money Out of the Smallest Space
Frieden believes that the reason she and her husband can’t find the home of their dreams is that developers are trying to fit as many units into every building as possible.
This makes sense, of course. With rents for one-bedroom apartments as high as they are, it certainly behooves them to build as many small units as possible in each building.
This Frustrating Reality Also Affects Families
However, Frieden argues that these developers are actually doing themselves a disservice as there are many Americans who would pay more for a two-bedroom unit.
Frieden explained, “Real estate developers are missing a huge opportunity to target this group — not to create senior housing, but to create condominiums that are more versatile and appeal to people who have a little bit more money.” She even mentioned that multigenerational families would be very interested in a larger condo or apartment.
If Boomers Don’t Move, the Housing Market Will Suffer
While this situation may not seem like a problem for the next generation, experts say it will absolutely affect them. If Boomers can’t find the right space for their later years, they won’t leave their family homes.
As people are living much longer than they used to, when it comes time for Millennials and Gen Zers to move from their starter apartments to their first family home, there won’t be any available.
The 2024 Housing Market
As of 2024, homebuyers can still expect higher home prices, although experts say mortgage rates will start to decrease soon.
However, there is still a housing shortage across the country. Therefore, even those who can afford the higher prices will continue to struggle to find the right home for their families. Experts worry that the housing shortage will get worse over the coming decades.
What’s Next for the US Housing Market?
As Boomers struggle to find retirement homes to suit their needs, the housing market will likely become even more tumultuous than it is now.
While there is certainly plenty of construction going on, most developers are still focusing on smaller units, which will not offer the American people what they truly need.
