In the past five years, baby boomers have staged an unexpected comeback in New Yorks real estate scene.
Theyre not just staying puttheyre actively buying, often ahead of millennials in many counties.
Their moves reflect shifting prioritiesand plenty of market influence.
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This trend is reflected in New York State as well.
By contrast, millennials share of home purchases fell to around 2829%.
Financial Advantage
One reason is financial strength.
Many boomers are repeat buyers who have built up equity in their current homes over years.
This gives them an advantage in competitive markets.
They either have small mortgages or none at all, so rising rates dont affect them as much.
Delaying Downsizing
Another factor is delayed downsizing.
Many boomers arent in a rush to sell their houses and move to something smaller.
This puts them in direct competition with younger families shopping for three-bedroom houses.
Overall, baby boomers presence in the housing market grew from 2018 to 2023.
National data shows that Americans over 55 years old now own the majority of U.S. homes.
Only about 15% said they expect to sell in the next five years.
This isnotwhat some experts predicted years ago.
But that hasnt happened yet.
New Yorks Graying Population
In New York State, this trend of staying put is evident.
Despite high living costs, many older New Yorkers are not moving out en masse.
This contrasts with the narrative that all retirees flee New York for warmer, cheaper states.
Younger families are actually more likely to leave New York than retirees.
Housing Supply Impacts
Boomers staying in their homes longer has big effects on the housing market.
It contributes to a lower supply of homes for sale.
But when over half of boomers decidenotto sell, it means fewer houses go on the market.
So they stay in place, which keeps housing inventory tight.
Surveys consistently show most seniors prefer to remain in familiar surroundings as they age.
In New Yorks rural areas, however, aging in place can be challenging.
In the suburbs and cities, aging in place can be a bit easier with more services nearby.
Butcostcan be a factor.
New York has high property taxes, especially in suburban counties.
Maintaining a large house can be expensive for retirees on fixed incomes.
This pushes some boomers to finally sell and move, but a lot are finding ways to stay.
The bottom line: a significant number of New Yorks baby boomers are staying put longer than previous generations.
Are they generally downsizing to smaller, easier-to-manage homes, or are some upsizing?
Many boomersaredownsizing, but not all of them.
In fact, a trend in 20182023 is that downsizing is not as common as expected.
Wanting asmallerhome was indeed a primary motivation, which suggests downsizing is on many boomers minds.
Not Always Downsizing
However, not every boomer wants a tiny condo or an apartment.
Some arenotdownsizing much at all.
If they have grandchildren or expect family to visit, they may want extra bedrooms.
Because many boomers are healthy and active longer, they might not mind maintaining a decent-sized house.
Right-Sizing Trend
Some boomers even upsize or right-size rather than strictly downsize.
But upsizing is less common than staying same-size.
These can be smaller and lower-maintenance options.
And as age increases, buyers place more importance on things likeproximity to health careand avoiding stairs.
Younger boomers (ages ~6069) were the most likely of any generation to buy homes insmall towns.
To sum up, downsizing is happening, but gradually.
Are they sticking within the state or leaving?
And within New York, which regions are seeing boomer movement?
As noted, younger boomers buying homes showed a preference for small towns.
New York has many small towns upstate (in the Hudson Valley, Catskills, Adirondacks, etc.)
that could attract retirees or semi-retirees.
Boomers also favor suburbs a lot.
Older boomers (70+) buying homes most often chosesuburban areas.
Others leave the city for suburbia or out-of-state.
During 20202021, when COVID-19 hit NYC hard, many older New Yorkers temporarily left the city.
Some of those who left were likely seniors concerned about virus risk in a dense city.
As mentioned, 55+ communities on Long Island are a popular choice.
This allows them to remain near friends, family, and familiar places while reducing maintenance burdens.
In contrast, Western New York (e.g.
Buffalo, Rochester) has a very different economic landscape.
Housing costs there are much lower.
This means they can afford to stay more easily.
These figures are slightly higher than the boomer share in the NYC metro (37.9%).
The most popular destination is Florida.
In 2022 alone, about 17% of all New Yorkers who moved out of state went to Florida.
Thats nearly 1 in 5 leaving New York for the Sunshine State.
Warm weather, no state income tax, and plentiful retirement communities make Florida a classic retiree magnet.
Other common destinations include the Carolinas, Georgia, and Pennsylvania.
Boomers who find New Yorks cost of living or winters difficult might choose these states.
Retirement Lifestyle
Many boomers are retiring or about to retire during this period.
Retirement often prompts a housing change.
to age comfortably without moving.
Family Connections
This is oftenthe top reasonboomers give for moving.
As people get older, being near children, grandchildren, or close friends becomes a priority.
NAR found that boomers primarily purchased homes to be near friends and family.
Or someone from Long Island might move to Rochester if their adult son settled there.
Conversely, if adult children have left New York, some boomers will leave to join them elsewhere.
Upon retirement, some boomers seek to reduce their expenses.
However, not all boomers move purely for money reasons; many balance cost with other factors.
Health plays a role a house without stairs can be important for those with mobility issues.
Some boomers move because their old home is simply too large or too much work.
They dont want to heat unused rooms or shovel a huge driveway anymore.
This practical motivation leads them to seek one-story houses, condos, or communities where upkeep is handled.
So they choose a place they can grow old in.
Healthcare Access
Access to good medical facilities is a quiet but important motivator.
As people age, they think about being near doctors and hospitals.
Some rural boomers move closer to cities for this reason.
Boomers in their 60s and 70s are increasingly considering this too, especially if they have chronic conditions.
Changes in the economy, housing market, and the boomers own stage of life drove these differences.
The period began with the Great Recession and housing crash around 2008.
This had a significant impact: home prices fell sharply and many homeowners (including boomers) lost equity.
Recent Market Shift
In 20182023, the situation evolved.
A major change in 20182023 is that boomers re-entered the market as buyers in force, especially around 20212023.
In effect, boomers extended their participation in the housing market instead of bowing out.
Many didnt retire as early as expected or didnt move out immediately upon retirement.
This is a big generational shift in whos buying homes.
Homeownership Trends
Homeownership rates among boomers kept rising through the 2010s.
Between 2013 and 2016, even among older boomers (65+), homeownership rates edged up.
So by 20182023, a larger proportion of boomers were homeowners than in the prior decade.
By 2023, boomers made up 42% of buyers, millennials about 29%.
From 20082017, many thought boomers would start downsizing en masse and relinquish their market share.
