20 million homes could be available, but not where buyers want them

Source: CNBC

As the U.S. continues to face a shortage of available homes, some may be looking at those occupied by “empty nesters” as an incoming source of inventory. As older residents begin to downsize, the thinking goes, the millions of homes they currently own will fill the deficit, thus bringing housing costs down. However, those units are likely to be the solution, says Zillow Senior Economist Orphe Divounguy. The reason is simple: Empty nesters, which Zillow defines as “residents ages 55 or older who have lived in the same home for 10 or more years, have no children at home and have at least two extra bedrooms,” don’t live in the same places where younger generations want to be, according to recent research.

“These empty-nest households are concentrated in more affordable markets where housing is already more accessible – not in the expensive coastal job centers where young workers are moving and where homes are most desperately needed,” said Divounguy in the report. Around 20.9 million households fit the definition of empty nesters in 2022 and out of the 50 biggest, U.S. cities, they have the greatest concentrations in Pittsburgh, Buffalo and Cleveland. But the cities with the most people under 44 are San Jose, Austin and Denver.