September 27, 2018
Baby Boomers in Today’s Housing Market Are Delaying Downsizing
Baby Boomers, the generation born between 1945 and 1964, are at the center of a new trend in the housing market: delaying downsizing. Both the older and younger members of this generation are choosing to work longer rather than retire. As a result, fewer baby boomers are entering retirement homes or moving into a smaller living space. Let’s take a look at why baby boomers in today’s housing market are delaying downsizing:
Work Now, Downsize Later
Instead of retiring, there are a substantial number of baby boomers who are opting to continue working. This may be a consequence of failing to properly plan and save for retirement, or the desire to remain active in the workforce. To put this into perspective, the number of men and women aged 65 or older who are still working increased from 15.9 percent in 2005 to 19.3 percent in 2016.
Taking Up Space in Today’s Housing Market?
Low housing inventory and a slow rate of construction of new homes have led some people to believe that these baby boomers are making it difficult for younger generations to find a home. If the baby boomers moved out, there would be more housing options for new homebuyers, and prices would probably not be as high. However, most have no intention of leaving their homes, even after their kids have moved out. In fact, these baby boomers have an average of two empty bedrooms in their homes.
Blame the Inventory Shortage
Even in areas that are more affordable and have more opportunities for downsizing, such as Dayton, Ohio and Knoxville, Tennessee, the housing inventory has been sharply falling. This makes it challenging for the baby boomers who actually wish to retire and move into a smaller home. So, perhaps this is why the baby boomers are staying put in their homes. If that’s the case, we should not put them at fault for the housing shortage.
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