Home Value Appreciation
Home prices in Minnesota surged from 2018 to 2023, boosting homeowners net worth.
Nationally, home values jumped nearly 47% in five years, and Minnesota saw similar double-digit appreciation.
Minnesotas Boomers echo this sentiment.
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Would-be younger buyers in Minnesota often face limited choices partly because many Boomers arent selling their houses.
In Minnesota, family ties and quality of life are strong motivators.
Buying and Selling: Are Minnesota Boomers Downsizing or Staying Put?
Essentially, many are downsizing or relocating for lifestyle reasons.
Preference for Single-Family Living
Downsizing doesnt necessarily mean leaving single-family living.
Typically, those who sold did so because their home no longer fit their needs.
Paul or regional hubs like Rochester.
With strong sentimental attachments and financial incentives to stay, many Boomers have opted to age in place.
Downsizing vs.
This indicates the majority favor staying put, while a minority are actively considering downsizing into senior-oriented developments.
The experiences of a Minneapolis empty nester versus a farmer in rural Roseau County can be quite different.
Twin Cities Metro (Urban/Suburban)
The MinneapolisSt.
Paul metro, home to over half the states population, naturally contains a huge number of Boomer homeowners.
Many of these are in suburban communities, where they bought homes in the 1980s2000s.
Within the Twin Cities, theres also a split between city and suburb Boomer preferences.
Regional Cities (Duluth, Rochester, St.
Cloud, etc.)
Minnesotas regional cities each have their own Boomer stories.
It was even named one of Forbes top 25 cities to retire in 2024.
Duluth, the major port city on Lake Superior, has traditionally had an older-than-average population.
It offers scenic beauty and a slower pace, which appeals to some retirees.
Other regional cities like St.
Cloud, Mankato, and Moorhead have seen modest Boomer downsizing activity as well.
These cities often serve as hubs where retirees from rural counties relocate to be closer to hospitals and shopping.
Rural counties have been growing older as young people move out, leaving a higher concentration of older adults.
Many rural Boomers live in homes theyve occupied for decades (family farms, homesteads, etc.)
and they often prefer to remain as long as health allows.
The challenges in rural areas include lack of alternative housing options and limited access to services.
Census data confirms that Minnesota experiences net outbound migration of older residents to traditional retirement havens.
Even when Boomers do finance, they often make large down payments.
Many use proceeds from the sale of their previous home directly as a down payment on the next.
From a selling standpoint, Boomers often enjoy a debt-free position on their homes.
During 20082012, many Boomers stayed put because it was difficult to sell without incurring a loss.
By 20132017, the market recovered, and Boomers cautiously began to sell and move again.
The result: far more Boomer listings and moves in the early 2020s than back in the early 2010s.
By 2023, those youngest Boomers are nearly 60 and the oldest are pushing 80.
Shift in Buyer Share
Throughout roughly 20142019, Millennials were the largest share of home buyers nationally.
By 20182023, Minnesotas housing shortage was more acute.
Some decided to stay put rather than enter a frenzied market.
Minnesota vs. National Trends
How do Minnesotas Baby Boomer housing trends compare to whats happening nationally?
In many respects, Minnesota aligns with broader U.S. patterns yet there are a few distinctive differences.
Aging in Place
National surveys consistently show a strong desire among Boomers to age in place.
Consequently, the share of homes owned by Boomers is slightly lower in Minnesota than the national average.
As of 2023, Americans aged 55 and up owned 54% of all owner-occupied homes nationwide a majority.
In Minnesota, Boomers head about 35.6% of homeowner households.
This lower percentage puts Minnesota among the states with the smallest share of Boomer homeowners.
Minnesota fits the pattern of a donor state for retirees.
The net migration of Minnesota Boomers is outward, whereas nationally theres a redistribution.
This is similar to other Upper Midwest states.
In contrast, states like Florida have expanded Boomer markets with influxes of retiree buyers.
Home Equity and Financing Usage
Across the U.S., Boomers are using their accumulated home equity advantage.
Minnesota Boomers are no different they have benefited from decades of generally rising home values.
So a larger proportion of Minnesota Boomers are in a position to buy their next home outright.
Housing Preferences
Culturally, Minnesota Boomers may have slightly different preferences than those in Sunbelt states.
But these are subtle differences.
On the whole, the desire for a smaller, accessible home and good community is universal.
Both phenomena are visible in Minnesota.
One could argue Minnesotas shortage is also influenced by other factors (under-building, etc.
), but Boomers aging in place is indeed a contributor as noted by local Realtor associations.
