More baby boomer homeowners have no plans to sell
Thirty percent of boomer homeowners have paid off, or nearly paid off the mortgage
Updated:
Photo by Jean Carlo Emer on Unsplash
Key Insights
- One-third of baby boomers say they’ll never sell their homes, with another 30% saying they’ll wait at least a decade, limiting housing inventory for younger generations.
- Financial security and emotional attachment are major reasons older homeowners choose to age in place.
- Tight inventory continues to challenge millennial and Gen Z buyers, despite a modest shift toward a buyer’s market and predictions of a small price drop by 2025.
Recent data show an increase in available homes for sale this spring. But other data suggest that very few of those sellers are baby boomers, who are choosing to stay in their homes indefinitely.
According to a new survey commissioned by Redfin, over one-third (33.5%) of baby boomers who own their homes say they’ll never sell, while another 30% don’t plan to sell for at least ten years.
This trend becomes even more pronounced among older generations. Nearly 45% of Silent Generation homeowners report they never intend to move. In contrast, only 25% of Gen Xers and 21% of millennials and Gen Zers say the same, indicating a generational divide in housing mobility.
Lifestyle stability and financial comfort appear to be the main reasons for this disparity. Roughly two-thirds (67%) of baby boomer homeowners have lived in their current home for over 16 years, with 55% saying they simply like their home and see no reason to move.
For many, these homes are long paid off or close to it—30% report their home is nearly or fully paid off, while others cite high current prices (16%) and the reluctance to give up low mortgage rates (8%) as deterrents.
Boomers hold the big homes
The consequences of this generational stay-put trend extend beyond limited listings. Most homes owned by baby boomers are large, family-ready single-family homes – 88% of them, in fact. Meanwhile, more than 70% of millennial and Gen Z homeowners have minor children, compared to just 4% of boomers. Yet it’s the boomers who are holding onto the housing stock young families need most.
“With baby boomers opting to age in place rather than sell, it’s challenging for younger buyers to find affordable options that fit their lifestyle,” said Redfin Chief Economist Daryl Fairweather.
In addition to limited inventory, affordability remains a hurdle. Home prices are up about 40% since before the pandemic, and mortgage rates hover around 7%, nearly double the pre-pandemic level. About 31% of boomer homeowners say they couldn’t afford to buy their own home in today’s market, which further cements their resolve to stay put.