According to a REALTOR.com study, housing inventories dropped 12% nationally from 2018 to 2019, the largest year over year decline in nearly 3 years. As a result, the U.S. market has a large housing inventory under supply. This is occurring just as 4.8 million millennials are reaching 30 years of age, an age where previous generations have bought homes. Arizona is not immune to the shortage, as according to the study the fifth biggest decline in active listings (-29%) occurred in the Phoenix-Mesa-Scottsdale metro area.
In an effort designed primarily to better target millennials, Realtor.com® has announced a “live like a local” partnership with home-sharing and vacation-booking site Airbnb.com. The idea is that potential home buyers can experience a specific neighborhood before purchasing by staying at owner-rented homes. The partnership will enable visitors to book Airbnb accommodations directly from the Realtor.com® site.
Are the buying habits of Millennials helping to destroy certain industries? A Wall Street Journal article last year said that Millennials are killing 5 industries. One of those businesses was new home builders, because Millennials don’t seem to be interested in owning homes. Our Information Market agrees, saying there is only one conclusion to draw about the continuing slump in new home construction in the Phoenix area in 2015, and that is “the Millennials are to blame”.