A staggering 54% of the United States population, 180 million people, could be looking to buy a house in the next few years but the current pandemic could make it harder for the largest generation to put down roots.
According to the U.S. Census, 12.3 million American households were formed from January 2012 to June 2021, but in that time only 7 million new single-family homes were built. Inventory is a large part of why it is so hard to buy a home right now. Labor shortages, rising building costs and land prices have kept single-family home construction moving at its slowest pace since 1995 (CNBC). Due to the pandemic-interrupted supply chain, prices for new and existing homes are rising at a record pace. New construction homes with a median value of $300,000 represented 32% of builder sales in the first half of 2021, down from 43% during the same period in 2018. “No matter how you frame the scenario, it will take a more meaningful shift in the pipeline to meet demand in the foreseeable future,” said Realtor.com chief economist Danielle Hale.
On the other side of pandemic influence is the rising desire to own a home. Despite all the challenges in building and buying a home, 80% of Gen X and Millennials in a recent eXp Realty study agree that owning a home now is more important to them than before the pandemic. The study also found that it is so important that 80% of people would give up gourmet coffee or dining out for a year to be able to buy a new or better home.
Even with this desire to take the next step towards financial independence 36% say buying a home in their area is too expensive, according to a survey from LendingTree. That’s not to say that this generation is unprepared to take this financial step, 64% of older millennials (35-44) say they are saving more since the start of the COVID-19 pandemic, it’s that there is not a reasonable opportunity for them to invest in a home, in a location that they want.
By creating attainable housing options, The True Life Companies can provide an opportunity for many of the 180 million people in their goal of owning a home. These homes will in turn increase the value of their communities as a whole and can invigorate the economy in otherwise stagnant areas.