Starter homes are quickly vanishing in cities across America. As a whole, the American population is opting to rent instead of buy. This is particularly true for the Baby Boomer generation who is selling their real estate assets to keep their capital liquid as they enter retirement.
Millennials who would be in the market for starter homes are taking a similar approach as the Baby Boomer generation. The price of homes is climbing in major metros, which is making it exceedingly difficult for Millennials to purchase starter homes. This is further compounded by the fact that Millennials are hampered with high levels of student debt and are starting families later in life.
According to a recent report from the real estate website Trulia, the availability of starter homes is shrinking; 95 of the top 100 metros is rapidly decreasing. California was one of the worst offenders with the following decreases:
- San Francisco: -73.9%
- Orange County: -79.4%
- San Diego: -80.4%
What This Means For Real Estate Investors
While starter homes are declining in many markets, renters are on the rise throughout the nation.
Investors are purchasing rental homes throughout the U.S. to capitalize on the increased demand. You too can easily invest in real estate properties. To get started, download our free informative white paper that shows you how to Be An Investor, Not a Landlord.