Determined Boomers Could Keep Housing Inventory Scarce for Years
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I’m sure everyone here has heard the expression “aging in place,” which refers to the growing number of seniors opting to stay in their current homes. This trend has limited the number of existing homes for sale, and a recent survey suggests the imbalance is going to get worse.
Roughly 61% of baby boomers now plan to die in their homes, up from 54% a year ago. Granted, they may not literally be planning to expire inside their homes (though who wouldn’t prefer that to a hospital or out on the street?), but they’re definitely not planning to sell anytime soon either.
The quick sell platform Clever Offers surveyed adults aged 60-79 years old (the baby boomers) this past summer on their housing plans for the future. When asked when they expect to sell their home, 61% said never, 10% said in fewer than 5 years, 14% said in 5-10 years, 7% said in 10-15 years, 4% said in 15-20 years, and 4% said more than 20 years from now.
Observers have been watching the market for signs of the boomer demographic aging out, so to speak. It seems, however, that folks of this generation are increasingly intent on staying put — prospective homebuyers be damned.
Housing affordability has become a serious issue for many across the United States due to factors ranging from inflationary pressures on consumers to a shortage of inventory. Builders haven’t been able to keep up with growing demand, and high interest rates have kept some prospective buyers on the sidelines.
As previously reported by CandysDirt.com, zoomers appear to be bearing the psychological brunt of the national housing shortage. An increasing number of them see home ownership as nothing more than a pipe dream.
The report by Clever Offers didn’t mince words about boomer sentiments on the intergenerational dynamic:
“When it comes to the housing market, it’s abundantly clear who boomers care most about: themselves and their fellow boomers, even at the expense of generations likely containing their kids and grandkids.
“Almost three-quarters of boomers (73%) say they value stability in their community over affordability for younger generations to move in. Meanwhile, 59% of boomer homeowners would vote for a political candidate who prioritizes protecting home values, even if it meant fewer people could afford homes. That’s a stark difference from the 49% of boomer non-homeowners who feel the same.”
Boomers’ reluctance to sell is driven by a mix of financial security, emotional attachment, and lifestyle preference, according to the survey. Many have paid off their mortgages, which has made it easier for them to age in place. Others don’t want to face the disruption of moving late in life or leave communities in which they might have strong social ties. These reasons are all the more salient considering nearly 70% of survey respondents said they would expect to make at least $100,000 in profit from selling their home. Some 43% said they’d clock more than $200,000 in profit, and 11% said they’d make at least $500,000.
So, what will motivate boomers to finally pack it in and sell their homes? When asked what would motivate them to change their plants to age in place, 58% of respondents said a serious health issue would do it, 39% cited home maintenance difficulties, 30% said financial hardship, 30% said losing a spouse or partner, and 24% said changes in neighborhood safety.
Interestingly enough, nearly a quarter said they would never consider selling their home. With American longevity being what it is, that’s a good bit of housing stock that’s going to be sitting on the shelf until time catches up to the owners. According to a recent Realtor.com report, baby boomers own nearly half of the country’s real estate wealth. That’s a lot of house.
