As the US faces a shortage of available homes, some are looking to occupied homes of “empty nesters” as a potential source of inventory. Empty nesters are individuals over 55 who have lived in their current home for 10+ years, have no children at home, and have at least two extra bedrooms. However, these households are not likely to offer a solution to the housing crisis, according to Orphe Divounguy, a senior economist at Zillow.
Research shows that empty nesters are concentrated in more affordable markets, where housing is already more accessible, rather than in expensive coastal job centers where young workers are moving. As a result, even if empty nesters were to vacate their homes, they would not be releasing properties that young people are looking for.
The cities with the highest number of empty nesters are Pittsburgh, Pennsylvania; Buffalo, New York; and Cleveland, Ohio, while the cities with the most people under 44 are San Jose, California; Austin, Texas; and Denver, Colorado.
New construction is seen as the only viable solution for improving housing affordability, but there are several roadblocks preventing it from keeping up with demand, including rising building material costs, lot size requirements, density restrictions, and lengthy project reviews.
Lowering costs for builders and streamlining building permit approvals could help move construction forward. Divounguy suggests that building codes in areas with less regulations, such as the South, have allowed builders to focus on density to keep homes affordable for buyers.
