A new survey indicates that Baby Boomers, that giant generation of more than 76 million people born between 1946 and 1964, represent a bit of a downer in today’s real estate market.
Why?
According to a survey conducted by the real estate listing service Redfin, a sizable chunk of the Baby Boomer generation, at 43%, is perfectly happy living in the houses they have now and have no intention of selling anytime soon.
This represents a massive block of residential real estate, during a time when many Americans are looking to buy a home, that will or won’t be on the market in the foreseeable future.
The survey notes that a solid 34% of the Baby Boomers surveyed said they not only had no immediate plans to sell their homes but asserted that they would more than likely never sell their homes. The second largest group at 27% said they wouldn’t consider putting up a for-sale sign for at least the next decade.
The Baby Boom determination never to sell exceeds the roughly 33% of Generation X homeowners, or those born between 1965 and 1980, who feel the same way. Only around 28% of the Millennial Generation, born between 1991 and 1996, combined with those in the Generation Z category, born between 1997 and 2012, were similarly inclined.
Baby Boomers declaring that they wanted to stay where they are revealed perfectly plausible reasons doing so: nearly 39% indicated that their homes were either completely or almost paid off. A second large group at just under 37% agreed with the following statement: “I just like my home and/or its location and have no reason to move.”
Additional reasons for not wanting to sell makes the Baby Boomers sound like every other generation in today’s market, pointing to the higher price of purchasing a replacement home and concerns about having to relinquish a current low mortgage rate.
The Redfin survey also indicated that some Baby Boomers might not be all that crazy about moving into planned housing communities, saying they didn’t want to pay high homeowners’ association fees.
Despite their huge demographic presence, the actual number of Baby Boomers is daily shrinking: that massive 76 million count was down to around 65 million a decade ago, with the Population Reference Bureau forecasting a drop to 58 million by the end of this decade.
Meanwhile, the houses they will leave behind, according to the publication Realtor Magazine, which is published by the National Association of Realtors, are at least 40 years old. “As homes age, their components need to be replaced or repaired to keep them sellable.”
Continues the publication: “A bloated, aging inventory of neglected homes could be the next big headache for the housing market.”
January 17, 2025
By Garry Boulard
Photo courtesy of Unsplash
