Are the baby boomers causing the housing shortage?
A super interesting article was written in the New Zealand Herald this morning in conjunction with the Washington Post. It really made us question the current thinking on Auckland's housing market and what other factors could be at play preventing first time home buyers from purchasing.
A new study commissioned by Mortgage Investor Freddie Mac has suggested that the decision of millions of older owners to remain in their existing homes rather than sell and downsize is dramatically reducing the number of homes available to first-time buyers for purchase.
As in the US, the most fundamental issue in Auckland's housing market is the lack of available houses for sale coupled with the increasing living costs in New Zealand's largest city.
Other factors obviously come into it including lifestyle choices, later marriages and childbearing and a psychological disadvantage with media continuously reporting how hard it is to enter the housing market (see the Massey University Financial Education Centre report, 2014).
We think it is something well worth look further into, we are seeing movement in Seniors selling their homes at Spacemax, however, most of the seniors we have storing with us are moving out of Auckland, Generally to Tauranga or up North rather than downsizing in Auckland.