Millennials Might Have an Easier Time Buying a Home in These 5 Cities Where Baby Boomers Might Ditch Their Homes

by MMC
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New search of the real estate market, Zillow shows where in the United States the gridlock could ease. It comes down to some factors that are difficult to change:Many current homeowners are “rate locked,” meaning their current interest rate is lower than what they would be offered if they tried to get a new mortgage.Today.

These homeowners have no financial incentive to move, even if they found a home at a similar price to their current one.

The key to opening the market may lie in the lucky households who are freed from this “rate lock-in”. Zillow discovered that baby boomers, people aged 60 to 78 and the Silent Generation, aged 79 to 96, had the highest percentage of “no rate lock” homeowners, at 17% and 14%, respectively. Meanwhile, Millennials (ages 28 to 43) and Gen Z (ages 27 and younger) are at the bottom of the scale, with 6% and 4% “no rate lock” respectively.

Zillow went further and identified 10.8 million homeowners, or nearly 13% of the national total, that it classified as “mortgage-free and mortgage-ready,” meaning these households are not only without a mortgage, but could “comfortably afford” a new one at current rates as well.

These are the households best placed to move and, if they wish, they could open up new inventory to potential buyers –who are often younger generations trying to gain a foothold in the housing market.

Zillow found that the five cities with the largest clusters of these households tended to be in the former Rust Belt of the Northeast and Midwest, defined by its manufacturing heritage. These domains also top the lists of regions of the country with the lowest cost of living.

Here are the five cities that Zillow highlighted with the most homeowners ready to move and list their homes, giving young, exhausted buyers the best chance to purchase a home.

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