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BiggerPockets Real Estate Podcast

Buying a House Could Get Easier for Millennials. There's Just One Big Problem...

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 25 April 2025

⏱️ 38 minutes

🧾️ Download transcript

Summary

The housing market could do something it’s never done before—permanently reverse. For as long as home prices have been recorded, they’ve always increased over time. But, with one of the largest generations, the Baby Boomers, aging out, and household formation shrinking as birth rates decline, we could face a new problem—insufficient demand. This is a huge problem for Millennials and the Gen Z generation since buying a house, the primary asset that makes up the majority of many Americans’ net worth, may not be the same wise financial decision as it was before. James Rodriguez joins us on the show to break down his recent article, The millennial homebuying predicament, and why buying a home may get easier for the younger generations, but it could come with less long-term payoff.  For years, economists speculated that a “silver tsunami” would flood the housing market with inventory. What actually ensued, however, was more of a “silver glacier,” since we’re still millions of housing units short. But once these boomer-owned homes hit the market, will prices grow, stall, or decline? What happens to home prices if the population stagnates or reverses? Does buying a home become a riskier decision? James is on to help us answer these questions and share which homes could be the safest bet for long-term demand.  In This Episode We Cover The demographic dropoff that could transform the housing market forever  Properties with the most (and least) demand as household sizes shrink  With population concerns, does buying a house become a much riskier decision? The “silver glacier” that’s slowly melting and bringing inventory to the market  Could immigration solve America’s population replacement problem? And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1113 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

The housing market dynamics that we've relied on for generations are changing.

0:04.5

The days when you could buy a home, live in it for 30 years, and then retire off the appreciation

0:09.3

might be coming to a close.

0:11.6

But just because the boomer real estate playbook is dead, doesn't mean you can't use real

0:16.6

estate to your long-term financial advantage.

0:19.3

And today, we're going to talk about how.

0:25.7

Hey, everyone, I'm Dave, head of real estate investing here at Bigger Pockets. And today on the show,

0:31.0

we are talking with business insider reporter James Rodriguez about a recent article he wrote

0:36.4

called the millennial home buying predicament. In this article, James talks about a recent article he wrote called the millennial home buying predicament.

0:39.2

In this article, James talks about a long-term shift that experts are seeing in the housing

0:44.2

market. Baby boomers, they're aging out of their homes and U.S. population growth is slowing.

0:50.3

So even though not enough new homes are being built, it is possible that housing supply could

0:55.8

actually catch up with housing demand over the next few decades.

1:00.3

And of course, if that happens, it will have huge effects on how much home prices appreciate

1:05.0

during that time.

1:06.5

Lots of boomers have seen home prices they bought back in the 90s triple in value since then.

1:12.3

So the question is, can millennials expect homes that they're maybe buying today to follow

1:17.2

that same trend? We're going to talk about that with James today and much more. And then at the

1:23.7

end of the episode, stick around because I'm going to share with you my own take

1:27.5

on what this all means for real estate investors. Because James's article is mostly focused

1:33.2

on people buying their primary homes to live in, but these same demographic dynamics

1:39.0

that homes will rise in value over several decades underpin almost every thesis of long-term real estate investing.

...

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