Boomers have the space. Millennials have the kids

Empty nesters are sitting on America's family-size homes. Why it matters: The people who have the space aren't necessarily the ones who need it — and that's making a tight housing market even tighter. By the numbers: Compared to millennials with kids, boomer empty nesters own nearly twice the share of homes with three-plus bedrooms (28%). Millennial parents own 16% and Gen Z parents own less than 1% of large homes, according to a Redfin analysis of the latest census data, from 2024. Zoom in: The highest shares of millennial families who own large homes are in Austin, Texas, Columbus, Ohio, and Minneapolis, at roughly 19%. The lowest are in Los Angeles (11%), Miami (13%) and San Jose, California (13%). And empty-nester boomers own more than 30% of large homes in Memphis, Tennessee, Cleveland and Pittsburgh. The big picture: Older homeowners have plenty of reasons to age in place . Many are mortgage-free or locked into low mortgage rates. Boomers may also want to stay put to remain near family, keep their routines or avoid packing up decades of belongings . Meanwhile, millennial families run into both supply and affordability challenges when trying to move into larger homes, per Redfin. There aren't enough family-size homes on the market, while high home prices and mortgage rates have priced many younger buyers out. Yes, but: Millennials have gained ground — from owning around 5% of large U.S. homes in 2014 to 16% in 2024 — partly by buying homes once owned by the Silent Generation, per Redfin. Boomer empty nesters who own large homes barely budged in that time. What we're watching: Whether more large homes hit the market as more homeowners start to give up their low mortgage rates.

Original source: Axios