Study: New Homes Tougher to Find in Millennial Hot Spots

December 5, 2019

New-home construction of single-family and multifamily homes is notably lower in areas that millennials are gravitating to, creating a housing affordability crunch for the generation, the National Association of Home Builders reports.

“These statistics point to a growing geographic mismatch between younger households with expanding housing demand and where construction is expanding,” the NAHB notes on its Eye on Housing blog.

The lack of construction—mixed with the higher demand—could further exacerbate ongoing housing affordability challenges for younger households, the NAHB notes.

The NAHB defines “millennial counties” as those where the age segment (born between 1981 and 1997) comprises at least 26% of the total population.

Apartment construction has been mostly flat since 2017. Single-family construction has lagged in mostly millennial-intensive counties compared to the rest of the country, too. That is “the opposite of what future housing demand requires,” the NAHB notes.

Economists have long pointed to the millennial generation as a critical source of emerging housing demand over the next decade. But new home construction is lagging in the counties where the generation is most likely to call home, the NAHB notes.

NAHB chart 12.5.19

© National Association of Home Builders

 

Source: 
Millennial Areas Front and Center to Housing Affordability Challenges,” National Association of Home Builders’ Eye on Housing blog (Dec. 3, 2019)