One set of analysts thinks the tight housing supply could be in due part to the actions of aging Baby Boomers:

The theory that the aging population would require fewer homes isn’t quite accurate. It turns out older consumers tend to prefer smaller dwellings but not fewer homes. The Barclays housing team makes the argument that currently more boomers are partly responsible for creating more households, putting pressure on housing demand…

“Hence, as an increasing share of the population shifts into older age groups, more and more households tend to be formed. That is, as a given household head ages, the size of the household (in terms of people) tends to become smaller and smaller, with children moving out and couples separating because of divorce or death,” the economist added…

“Retired people always are much more likely to be the head of a household than those in pre-retirement age. This is because a given person in this age group is much more likely to be a single head of a household, especially as they, inevitably, lose a life partner,” Millar told Yahoo Finance in an email. “The difference now is that this generation is a much larger group than the one that preceded it, which means that they demand much more housing.”

That leaves less existing inventory for the younger ones, especially millennials as they reach an age where they would form a new household and buy a house.

Do Americans have to take up more houses just because there are more people? This gets at American ideas about single-family homes and households. Is it most desirable to spread out and have numerous private dwellings? Is this also a reflection of sprawling development in the post-World War II era?

If future generations are smaller in size, they could theoretically occupy fewer houses just by having fewer people. But, they could also decide to live in different ways. Fewer detached housing units? Denser settings, even in the suburbs?

This story is not over as population changes and desires for housing are dynamic.