Across America, baby boomers continue to make their mark, and their decisions on homeownership are significantly affecting the housing market. Born between 1946 and 1964, this generation has shaped the nation’s economy and culture. Now, as they age, their decision to hold onto their homes is impacting housing availability.
A new survey from Clever Real Estate shows that 61% of boomers currently own homes, and 54% of those homeowners intend to stay in their homes for life. With only 15% of boomers planning to sell in the next five years, the already tight housing market will likely see little relief.
For many boomers, remaining in their homes is tied to financial stability. A significant 76% of them credit homeownership as the main reason for their financial security. With mortgages paid off, 40% of boomers cite lower housing costs as a key reason to stay put. Additionally, 37% want to leave their homes as part of their legacy, passing them down to their children.
Financial Security Keeps Boomers in Place
But it’s not just about money. Emotional factors also play a significant role. About 22% of boomers say they feel a deep attachment to their homes, while 19% point to strong ties to their communities as a reason to stay.
Still, not all boomers have the luxury of choice. 25% say they can’t afford to buy another home in today’s market, while 16% can’t cover the expenses of moving into retirement or assisted living communities.
While many boomers plan to remain in their homes, they’re not without concerns. 90% of them worry about the costs of maintaining their property as they age. The most common worries include home maintenance (59%) and the physical effort required to keep up the property (55%). Concerns about rising property taxes (49%) and utility costs (42%) also weigh heavily.
Surprisingly, only 8% are worried about a housing market crash or public safety, despite these issues frequently making headlines.
Boomers Weighing the Cost of Staying vs. Selling
For those who do plan to sell, many expect substantial profits. Nearly 65% believe they’ll clear over $100,000 from their home’s sale, with 40% anticipating gains of $200,000 or more. These significant profits, often tax-free, will help fund their retirement.
Boomers who bought homes decades ago are in an especially favorable position. 50% of them purchased their first homes for $75,000 or less, and 64% paid under $100,000. Today’s median home price exceeds $400,000, highlighting the vast financial benefit many will see from selling.
As boomers age, their decision to hold on to homes will continue to shape the housing market, limiting options for younger generations looking to buy. For now, the boomer generation’s influence on housing isn’t fading anytime soon.
Click here for more on Clever Real Estate’s examination of baby boomers and the housing market.
The post More Boomers Are Staying Put first appeared on The MortgagePoint.
