I’m new to this sub. Why is there a housing shortage when the birth rate has been declining considerably? The national news just said we need 5 million more homes to satisfy the current need. I’m genuinely curious. Thanks!
In: Economics
(1) Housing stock can fall into disrepair reducing the available number of houses. Low level of new builds may only replace this rather than provide the needed increase in homes.
(2) Aging population. Life expectancy has increased over the last 30-40 years. That means older people are using their houses for longer so they aren’t becoming available for younger people aging in to buying their first property.
(3) changing social norms. People used to live at home until they were married, then a couple would move in to their first home together. Now people leave home earlier and frequently live alone either (and esp both combined) pushes up demand on the number of properties required. Equally family break ups means that that same married couple now often need 2 houses instead of one (at least until one or both parents enter into another co-domicile arrangement). Also multi-generational living is less common. Older relatives are less likely to move in with their kids now than once upon a time too.
(4) inefficient use of housing stock. A lot of those older houses that were used for multi generational family living, or even sometimes multiple families, are now single family dwelling rather than being split up into multiple flats for instance.
(5) immigration. Even though the birth rate is down the population is up. Lower death rates is only part of this, and net inward migration is the other part.
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