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My wife is selling her first home now that we're in our first joint home. For reference, she's 26, I'm 28. I have some thoughts about this whole thing because the house is not selling and it's generally for stupid reasons:
Interest rates are high, so the monthly payment is going to be twice what ours used to be when the house was bought in 2020. Interest rates are never going to be that low again and anyone without a sizeable down-payment just can't afford it. Young people generally don't have sizeable down payments, because they're not selling a home to get their first.
People continually complain about inexpensive cosmetic work like cabinet doors and floors. They walk away from a house with zero real issues because they don't want to fix things like that.
Builders are offering great deals on new homes. No closing costs, paying lawyer's fees, etc. The problem is that new build quality has been fucking awful lately. Before my wife and I bought our current home, we took a look at a new-build neighborhood and even the example home had glaring issues.
Investors. We had an offer for cash, as is, and took it because people with loans just can't compete with that. Why wouldn't we take someone who can pay cash and doesn't care about inspections or cosmetics?
My take? Young people have no money, interest rates suck, but when a home becomes available that is affordable, they don't want to put in the work to fix up cosmetic issues. They expect new-build appearances, but don't realize that comes with poor new-build quality. It's a multi-faceted issue.
Sounds like an issue of being unable to get into the market (that you continued to propogate). Young people are poor, so they're unable to compete.