Are ‘Baby Boomers’ Creating Housing Gridlock?

Are ‘Baby Boomers’ Creating Housing Gridlock?

A new report highlights that over half (54%) of Baby Boomer homeowners, aged 55 and older, have no plans to sell their homes, with only 15% considering selling within the next five years. The retention of properties, estimated at around 33 million, affects housing availability for younger generations, such as millennials, who are seeking to buy homes. Concerns among Boomers include 35% worried about finding a suitable home and 34% concerned about affordability.

• Boomers own about 38% of the homes in America.

• 85% do not plan to sell their home next year.

• 54% do not plan on ever selling their home.

• 66% of boomers who never owned a home regret it.

Ralph’s Take

It’s fascinating to see how different the homebuying experience was for past generations. Half of Baby Boomers surveyed purchased their first home for $75,000 or less, and 64% paid under $100,000. Only 6% cited home prices as their biggest challenge when buying their first home. As Baby Boomers "age in place," and remain in their current homes rather than downsizing or moving to retirement communities, it effectively reduces the inventory for younger generations who are looking to enter the housing market.