This is an older, established neighborhood of modestly sized and valued homes. These homes and others like them, if they were available, would be perfect for people who are just starting out or upwardly mobile,
Housing availability
There was a time in this country when starter homes were common. People just starting out on their home who were opting for home ownership (to build equity and have pride of ownership) rather than for a rental apartment were becoming homeowners. Obviously, they couldn’t afford much at their age and being new to the job market. So, they bought what they could as a starter home.
Some homebuilders used to offer starter homes, and people would leave them as they moved on to an upgrade in size, features, value, or location. Today, the starter home mostly does not exist like it did. When a smaller home is identified, it often comes with a fairly significant price.
So, the overall picture of housing availability has changed. It no longer allows people starting out in life as young adults to get their piece of the American Dream so it can grow with them over their lifetime. Their options are severely limited.
The Boomer factor
The Baby Boomer generation, born from 1946-1964, was able to experience the starter home phenomena and jump into the housing market at a relatively young age. Some were fortunate to find their lifetime home from the beginning. Others made a series of strategic and financial moves over the course of their early to middle years and discovered their longterm home.
It’s not the fault of Boomers, or other homeowners who love the homes they are in, that there is a shortage of affordable or desirable homes today. Even if Boomers were to flood the market with the homes they have been occupying, it’s likely that people starting out on their path of homeownership would still be unable to afford most of them, perhaps all of them.
It’s a supply and demand issue that the Boomers are part of, but not responsible for producing.
Housing supply has lagged
We have been homes, and they are being consumed. However, few people factored in the desire for Boomers to stay where they are longterm. Historically, many of these homes would have been reintroduced into the housing supply. Because they weren’t, the market did not respond in a timely fashion to add homes that were held off the market.
This is not a consumer-driven issue. It is strictly one of lack of supply – for many different reasons ranging from time to build, available land, fees, regulations, and the number of construction workers.