This aging wave has big implications.
Will there be a flood of homes for sale as Boomers transition out of their houses?
Or will many age in place, reducing the number of homes available to buy?
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This trend reflects how Boomers accumulated homes over the decades, while younger groups struggled to gain a foothold.
In total, Baby Boomers inhabit roughly 32 million owner-occupied homes nationwide.
The housing wealth tied up in those homes is enormous on the order of trillions of dollars.
Many Boomers have paid off their mortgages over time and built up significant equity.
It also means a lot of housing wealth will transfer to younger generations in coming years.
Boomers dominance in homeownership has even shown up in recent home-buying trends.
Where Baby Boomers live and own homes differs across the country, leading to different regional housing trends.
These places have some of the highest concentrations of Boomer homeowners.
For example, about 42% of homeowners in Florida are Baby Boomers.
Delaware and Hawaii are also around the 40% mark, topping the nation.
In metropolitan areas such as Tucson, AZ and TampaSt.
Petersburg, FL, roughly 40% or more of all homeowners are Boomers.
These Sunbelt regions are popular for their warm climate, lower taxes, or attractive lifestyle for seniors.
The high demand from incoming retirees has boosted home prices and spurred construction of retirement communities in these areas.
Cities like Pittsburgh, PA or Cleveland, OH now have very large proportions of senior homeowners.
This was by far the most common plan among Boomers.
The next most common plan moving to a retirement community was only about 20%.
During 20202021, rates dropped under 3%, and a lot of owners secured ultra-low fixed mortgages.
That financial hit makes downsizing less appealing.
This means living in their current home is very cheap just taxes, insurance, and maintenance.
If Boomers sell, they might face steep prices for buying a different home.
About 21% said theyre staying put because home prices are too high to justify a move.
Emotional Attachment and Community Ties
Financial logic aside, many people simply love their homes and communities.
They may have lived in that house for decades, raised families there, and built deep community ties.
Technology Enabling Independent Living
Its also increasingly feasible for Boomers to remain at home.
This means turnover is slow.
Now the tenure of homeownership has lengthened considerably, largely due to older owners not selling.
Nationwide housing inventory in 20232024 has been near record lows, which in turn pushes prices to record highs.
This creates an affordability crunch for buyers.
Impact on Family Homes and Younger Buyers
Younger generations feel the squeeze.
Will There Be a Housing Flood Later?
The idea was that millions of homes would be released, perhaps easing the affordability crisis.
However, current data and forecasts suggest the influx will be gradual and not a cure-all for high prices.
But theres a big catch: those homes dont line up with the areas of greatest need.
The Coming Wave: When Will It Arrive?
That said, the wave hasnt crested yet.
In the near term, it has mostly presented challenges for housing affordability and access.
This is one reason homeownership rates for young adults have lagged behind previous generations.
About 79.6% of Baby Boomers own their home, but only 54.9% of Millennials do.
While this can be positive for family bonding, its often an adaptation to housing affordability issues.
For instance, by 2040, the youngest Boomers will be in their mid-70s and the oldest near 95.
Inevitably, millions of homes will change hands.
So builders and remodelers are focusing on features that allow aging in place safely.
This indicates a huge opportunity for retrofitting existing homes.
Investors and developers are responding by building more senior apartments and retirement villages.
By 2040, the nation will have an unprecedented number of octogenarians (people in their 80s).
Communities will face decisions on how to handle an older population.
For now, many Boomers are content to stay where they are, creating a bottleneck for housing turnover.
But change is on the horizon as the generation gets older.
Over the next 10 to 20 years, we can expect a considerable generational handoff of housing.
