Original Source:  CNBC

A Move That’s Hard to Make

You’ve probably heard it all before: The U.S. housing market is in crisis. The shortage of available homes is creating an affordability nightmare, especially for first-time homebuyers and young professionals. As older generations downsize, it was expected that their vacated homes would become a solution for younger buyers. But, what if those homes aren't exactly what the younger generation wants or needs? With millions of empty nesters moving out of larger homes, a key question remains—will these homes help solve the housing crisis, or do they just add to the complexity? Understanding this shift is important because it highlights just how difficult it can be to make a move, whether it’s moving to a new house or, in your case, moving to a new opportunity.

The Housing Shortage: A Complex Problem

The U.S. is currently experiencing an unprecedented housing shortage, largely driven by a combination of population growth, limited new construction, and higher home prices. For young people, it’s become increasingly difficult to find an affordable home in desirable locations, especially in cities where many jobs are concentrated, such as San Francisco, New York, or Los Angeles. The lack of inventory, coupled with soaring demand, has forced many potential buyers to stretch their budgets or give up on homeownership entirely. On the flip side, there are millions of older Americans, often referred to as “empty nesters,” who are beginning to downsize. The expectation was that these individuals would vacate their larger homes, freeing up more inventory for younger buyers. According to recent research from Zillow, roughly 20.9 million households in the U.S. qualify as empty nesters—people over the age of 55 who have lived in their homes for 10 years or more. But while these homes represent an opportunity, there’s a catch.

The Location Problem: Where Empty Nesters Live

Empty nesters are concentrated in different areas than where younger generations want to live. Many of these homes are located in more affordable markets, such as Pittsburgh, Buffalo, and Cleveland. While these cities may offer lower home prices, they aren’t where young workers want to live. Younger generations are flocking to tech hubs, job centers, and vibrant urban areas in places like San Jose, Austin, and Denver. The key issue here is simple: The areas where empty nesters live are not the areas where younger buyers are looking to settle down. With the rise of remote work and the growth of tech and other industries, younger professionals are seeking homes in larger cities with access to job opportunities, entertainment, and modern amenities. Unfortunately, many of the homes vacated by empty nesters are not located in these high-demand, high-cost markets.

A Mismatch in Home Types: Size and Affordability

Even when empty nesters are moving out of their homes, the properties they leave behind may not be a perfect fit for younger buyers. Many of these homes are larger than what younger people need. Empty nesters often reside in houses with multiple bedrooms, large backyards, and extra rooms that might not serve a purpose for younger individuals or small families. Moreover, the price point of these homes could still be too high for young buyers, especially in markets where housing costs have skyrocketed. In addition, the design and features of older homes may not align with the preferences of younger buyers. Today’s homebuyers are looking for modern layouts, open spaces, energy-efficient appliances, and updated interiors. Older homes may require costly renovations to meet the demands of younger generations, further discouraging them from making a move. This mismatch between the homes being vacated and the types of homes younger people want to buy only exacerbates the housing shortage, leaving both sellers and buyers in a difficult position.

New Construction: The Key to Solving the Housing Crisis

While the relocation of empty nesters may provide some additional inventory, the real solution to the housing shortage lies in new construction. Building new homes in cities facing housing shortages would not only address the inventory gap but also help to keep housing prices in check. However, new construction comes with its own set of challenges.

The cost of building materials has risen dramatically in recent years, making it more expensive for builders to construct homes. Additionally, zoning laws, density restrictions, and lengthy permitting processes can delay the construction of new homes by months or even years. In some cases, developers may not be able to build homes at all due to regulatory barriers. These hurdles make it difficult to increase the housing supply at the pace necessary to meet demand.

One potential solution lies in loosening these regulations and offering incentives to builders. For example, reducing the cost of land, revising zoning laws to allow for more density, and expediting the approval process for new projects could all help to accelerate the development of new homes. States like Texas, which have fewer building restrictions, have been able to maintain a more affordable housing market by allowing for greater density in construction.

Moving Doesn’t Have to Be Hard: A Seamless Transition Awaits You

If you’re thinking about making a big move, whether it’s to a new home or a new job, you probably already know that transitions can be challenging. The process can feel overwhelming, especially when you face new environments, new responsibilities, and even new systems to navigate. The housing market is a reflection of this reality, but the transition doesn’t have to be as difficult as it may initially seem. Just as moving homes or changing jobs can be complex, switching to a new company or transitioning to a different role can also come with its own set of challenges. That’s where Innovative Mortgage Services, Inc. comes in. We understand that making a move can be a stressful experience—whether it’s finding the perfect home or finding the perfect fit at a new company. That’s why we invest heavily in resources to ensure that originators who choose to move to our model can transition quickly and seamlessly. We take special care to onboard new originators quickly, providing them with streamlined and relevant training that equips them with all the necessary tools to start writing business immediately. Our goal is to make sure you don’t lose time or business during your transition. Much like the housing market, moving to a new company doesn’t have to be a complicated or overwhelming process. With the right support and resources, you can make the transition confidently and smoothly.

Ready for a Smooth Move?

Just like moving to a new home, transitioning to a new company can feel challenging, but it doesn’t have to be a stressful experience. Innovative Mortgage Services, Inc. offers all the support you need to make your move a success. We invest in helping originators transition quickly to our model without missing a beat. Don’t let the fear of change hold you back—contact us today to see how we can make your move to a new career or home a smooth and successful one.