The availabiity of housing has less to do with older folks not moving out of the home they have paid off than it is of not enough new, additional homes being built. If not enough additional homes are being built, the market remains too tight even for the older folks wanting to “downsize”. If the new housing supply is growing enough, then whether younger first time buyers or older “downsizing” buyers, its a better housing market.
I don’t disagree. It is a supply and demand question. But there are apples and oranges in the fruit aisle. Younger couples are more likely to need larger homes or at least homes with more bedrooms. Older couples are more likely to need fewer extra bedrooms. The supply and the types of homes both matter in the question of generating more supply overall. The bottom line is more supply should lead to more affordable housing.