Smart-growth planners justify their preoccupation with multifamily housing on the notion that, not only do Millennials prefer such housing, but as Baby Boomers become Empty Nesters, they too will prefer such housing. This is based on a logical fallacy:
- Most people in multifamily housing have no children
- When their children leave home, Baby Boomers will no longer have children
- Therefore, most Baby Boomers will prefer multifamily housing.
The reality, of course, is that even most Millennials live in suburbs, not dense inner cities–and even more aspire to eventually own their own home. So to presume that Baby Boomers will suddenly move to multifamily housing, out of possible nostalgia for their younger years, is absurd.
This is confirmed by a recent analysis of census data published by Fannie Mae. The share of Baby Boomers with children living at home declined from more than 24 percent in 2006 to 12 percent in 2012. Yet the share of Baby Boomers who live in single-family homes has fallen by just 0.3 percent from their peak, and remain today above the share before the financial crisis.
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