Homeownership among older Michiganders is high.
Michigan reflects this trend, with boomers holding a substantial share of the states housing stock.
An overwhelming majority of older homeowners are choosing to remain in their existing homes rather than sell.
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When seniors stay put, fewer homes are listed for sale.
Michigans tax structure also rewards longevity in a home.
This makes it financially beneficial for people to stay in their homes as they age.
The likelihood of downsizing increases at the upper end of the age spectrum.
As boomers age into their late 70s and 80s in the coming years, more will follow this pattern.
This represents a dramatic rise from the late 2010s, when millennials were often the leading buyer group.
Financial Advantages
One reason boomers have been so prominent as buyers is their financial strength and flexibility.
In Michigans market, characterized by low inventory in 20202022, cash offers were especially appealing to sellers.
Boomers could tap proceeds from selling a long-time residence or use retirement savings to buy a retirement home outright.
Motivations and Preferences
The motivations behind boomer home purchases in 20182023 reflected their stage of life.
Retirement and family considerations were top reasons.
Many explicitly desired a smaller home with less upkeep.
During 20182023, boomers consistently made up the largest share of home sellers of any generation.
In Michigan, where boomers own a huge portion of homes, this percentage is likely similar or higher.
Future Housing Release
That said, the silver tsunami isnt cancelled, only postponed.
Michigans share of that will be significant given its age profile.
Already, some impacts are visible in certain locales.
There are notable urban-rural and north-south divides in how baby boomers approach housing.
As a result, numerous Detroit-area suburbs have rapidly aging populations.
Nearby Highland Park is about 22% seniors.
These older suburbanites often live in spacious mid-century homes.
This contributes to the inventory shortage in family-friendly housing across metro Detroit.
Detroit fits this profile.
The Grand Traverse Bay area (Traverse City and environs) is a prime example.
Boomers from downstate often purchase second homes or plan their retirement around this region.
Grand Traverse Countys share of residents 65+ jumped from 14.8% in 2010 to 22% by 2022.
Other Regional Variations
West Michigan and Southern Michigan regions show varied patterns.
The Upper Peninsula, more remote and historically losing young people, has an increasingly older population as well.
communities see boomers holding properties with little competition from new buyers, which can depress prices or liquidity.
On the other hand, certain amenity-rich U.P.
areas (Marquette, Houghton) attract retirees for their beauty and simplicity.
From 2019 through 2022, home values in Michigan jumped sharply by roughly 40% statewide since 2019.
Many boomers who owned homes gained significant equity as prices climbed year after year.
This wealth effect made some feel financially secure enough to retire or invest in second properties.
Others held off selling entirely, worried that they wouldnt find an affordable next home.
Boomers were uniquely positioned in how they felt this change.
This had a chilling effect on many would-be buyers but less so on boomers.
), exacerbating the inventory crunch.
This contributed to a surge in multi-generational households.
With travel and gatherings curtailed in 2020, homeowners focused on renovations and comforts.
Boomers poured money into updating their houses with the mindset that they might stay indefinitely.
This could further delay sales, as improved homes better meet aging owners needs.
Michigan, with its faster-than-average aging, might see this shift slightly sooner.
