Written by Elena Cox | Stacker
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Photo by Vlad Sargu on Unsplash
The two-and-a-half-year real estate rollercoaster has calmed in 2023, at least somewhat, as more Americans decide to stay put.
Lack of inventory is the main culprit behind the affordable housing crisis. The reasons behind this are complex, including a construction worker shortage. But another factor is at play: Older Americans are staying in their homes longer and buying more homes than ever. Essentially, they’re hoarding the few homes that might otherwise be available and driving up prices on the ones that are.
“The big story for the last couple of months has been lack of inventory due to mortgage rate lock-ins,” Redfin chief economist Daryl Fairweather said. “Now that rates are above 7%, it doesn’t make sense for a lot of people to sell.”
Stacker analyzed data from the Federal Reserve, the National Association of Realtors, and other sources to show how the baby boomer generation affects housing affordability in the U.S.
