Homeownership is always popular, regardless of housing market conditions. Americans consistently say they want to own their own home. That means demand for homes for sale is relatively consistent. There are always buyers. Home sellers, on the other hand, are another story. In recent years, with the supply of homes for sale lower than historically normal, there has been a lot of focus on why there are fewer homes available to buy. One answer is explored more closely in a new report from the Mortgage Bankers Association’s Research Institute for Housing America. The report finds that, since 2015, the homeownership rate among Americans 70 years and older has seen a sizable increase. There are many reasons for this, including higher mortgage rates since the pandemic, but – combined with the growing population of older Americans – it has led to an ongoing lack of existing homes for sale, homes that would’ve been sold in previous years. That change in the supply cycle has implications for prospective buyers, as low inventory has been the primary driver of higher home prices in recent years. (source)
