Housing Affordability Is Gen Z's Top Voting Issue

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"We all have two lives. The second one starts when we realize we only have one."

-Confucius

Availability of Lots for New Homes Drops Year-Over-Year link

• The New Home Lot Supply report shows a significant year-over-year drop in lot availability across the U.S. The tightening lot supply reflects increased construction activity recently.

• Limited desirable land near job centers pushes developments to the suburbs, lacking infrastructure. This creates bottlenecks for builders and affects housing market dynamics.

• Most U.S. markets are still "significantly undersupplied" in lot inventory, complicating new construction. This imbalance challenges the expansion of new housing communities.

Housing Affordability Is Gen Z's Top Voting Issue link

• 91% of adult Gen Zers consider housing affordability a crucial factor in their voting decisions, making it their top issue. This surpasses other concerns such as the economy, abortion, and gun rights.

• Home prices have surged over 40% since the pre-pandemic period, with 2023 being the least affordable year on record. High mortgage rates and increased rental costs are significant barriers for young potential homeowners.

• Only 26% of adult Gen Zers currently own homes, highlighting the difficulty for first-time buyers to enter the market. Elevated home prices and rising rents continue to strain their financial capabilities and long-term wealth-building prospects.

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Global Fund Managers Cut CRE Allocations to 15-Year Low link

• A net 28% of managers were underweight in the real estate sector in May, marking a significant drop from April's figures. This shift is linked to rising borrowing costs and prolonged economic uncertainties.

• The commercial real estate market struggles with the aftermath of ultra-low interest rates and evolving office space demands post-COVID-19. Higher-for-longer borrowing costs in major economies further strain the sector.

• Fund managers are reallocating from real estate to consumer stocks, bonds, and cash, aiming for more stable returns. The global CRE sector experienced a 4.1% loss in 2023, the worst annual return since 2009.

More Gen Z Entering the Construction Industry link

• The share of construction workers aged 25 and under rose to 10.8% in 2022, up from 9% in 2015. This indicates growing interest among younger generations in construction careers.

• Gen Z is drawn to construction due to modern technology, high college costs, competitive wages, job security, and growth potential. This trend helps counter the aging workforce in the industry.

• States like Utah have younger construction workers, with a median age below 39. In contrast, West Virginia has the oldest median age at 45 years.

44% of adults would buy their childhood home today if they could afford it link

• Nearly two-thirds of Americans born in the 1980s (62%) and over half born after 1990 (55%) would buy their childhood home if cost wasn't an issue. However, only 50% of all Americans say they can afford it at today's prices.

• The nostalgia for childhood homes is driven by positive memories and a sense of comfort and safety. Yet, the affordability gap is significant, with many unable to match their childhood dreams with current financial realities.

• Dream features from childhood homes, like pools and home theaters, remain popular, with 72% and 76% of adults still wanting these today. Practical features such as air conditioning, walk-in closets, and laundry rooms are now more commonly desired.

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That's all, folks.

Cheers,

Vidit

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