Where are all the Baby Boomers’ Homes?
As Baby Boomers age (most are into their 70s), where is all that inventory? Conventional wisdom says they should be moving in droves to multi-family rentals (that’s code word for “assisted living”, “independent living”, “senior citizen homes”, etc). Quite the opposite is happening. The Census Bureau data reveals that homeownership in this age group is actually increasing!
In this very interesting study by Fannie Mae, it digs into this paradox, what’s going on and what the future holds for housing. Inevitably, this generation will be moving-on as they age. Read it here: https://www.fanniemae.com/
Key Findings:
- 2022: Boomer account for 21% of the US population but 38% of homeowners.
- 2022-2035: estimated decline from 32mil to 23mil Boomer households
- 2028: possible reduction of 2.7mil Boomer households.
- 2035: possible decline if around 1mil Boomer households
Additional Insights:
- 2023: Two million potential Millenial households identified
- Next 5 Years: Increase in young adult ownership expected to offset Boomer decline. (this would be younger Millenial and Gen Z buyers)
Hope this helps you work with your clients, and of course, if I can assist with any questions or buyers’ needs, please contact me.
Thanks!
Joel
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