There is a disconnect between where homebuilders are building and where millennials want to live. NAHB predicts in their 2019 third quarter Home Building Geography Index (HBGI) that in the coming decade, 67 % of all millennials will be living in counties where housing construction has lagged.
Millennials are headed in the opposite direction.
Stereotypes portray millennials as strictly city dwellers. Even though a considerable percentage of millennials love an urban lifestyle, most of them are heading back to the suburbs. That is especially true for millennials that plan to get married and settle down in the next coming years. Eight out of ten millennials own a home or plan to own one in the next few years. They are in search of stability.
The problem is high construction costs and zoning regulations.
At the current trajectory, construction isn’t anywhere close to meeting the high demand for millennial single-family homes, let alone, multifamily units. One of the driving factors for the slower growth in housing experts say is the labor shortage in construction and the inflated costs of land and compliance requirements.
The population levels in millennial intensive counties (geographic regions where millennials make up 25 % of the total population) account for 62 % of the total US population, but they account for just 59% of single-family homebuilding according to the HBGI report.
This mismatch between housing demand and housing availability will continue to be a challenge for the market. However, programs like GO Mortgage's Single Close Construction are building systems to meet the high demand and assist first time homebuyers with education in and around the modern housing market.
Speak with a home loan advisor at GO Mortgage today, to start building your dream home.