Many people think that empty nesters – older adults whose kids have moved out – will soon flood the housing market with homes, making them more affordable.
But in reality, this won’t happen as much as some hope. Let’s break down why.
In 2022, there were about 20.9 million empty nesters, up from 20.2 million in 2017.
While that might sound like a lot, it’s not enough to meet the demand for homes in areas where housing is hardest to find, like big cities on the coast.
Most empty nesters already live in places like Pittsburgh or Cleveland, where homes are more affordable.
These areas don’t have as much demand for new homes, so any extra supply of homes won’t make much of a difference there.
On the other hand, places like Austin, Seattle, and Denver are where many younger people want to live, but they don’t have as many empty nesters.
Simply put, empty nesters aren’t going to solve the problem because they’re not living in the areas where housing is needed the most.
What’s really needed to fix the affordability problem is building more homes, especially in high-demand cities.
Removing barriers to homeownership, like helping with down payments or offering credit assistance, could also help more people buy homes.
In the end, while empty nesters might contribute a little to the housing market, they’re not the big solution.
More homes and better policies are the real keys to making housing affordable.