Don’t blame millennials for gentrification; apparently, their parents are flocking to the cities too.
Retiring baby boomers looking to downsize have been “renting apartments and buying condos at more than twice the rate of their millennial children,” according to The Washington Post.
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That exacerbates a lack of affordable housing. As baby boomers have a higher ability to pay — and, apparently, a higher demand — than millennials, developers will focus on housing that appeals to the group with the deeper pockets.
Cities are already reluctant to reform zoning rules that could encourage affordable housing and accept vibrancy and change. Baby boomers are following a desire to downsize and can’t carry all the blame here. The rigid structures of city codes make it a headache for developers; trying to get exemptions and fight against local opposition in an effort to do something different takes time, money, and effort. It’s easier to build some high-priced condos instead.
The Post also notes that the baby boomers moving in are wealthier and downsizing their living space. That’s a divide along wealth, not generation. As with any high-demand housing market, the preferences of the wealthier drive building decisions. When flexibility is lacking, an economically diverse crowd isn’t likely to gain.
This crowding-out effect might benefit smaller cities, though. If New York City, Washington D.C., and San Francisco are too pricey for all but wealthy baby boomers, mid-sized cities might continue to attract millennials. Pittsburgh and Des Moines don’t have the cultural pizzazz, but a low cost of living and surprising charm might be enough.
