Baby Boomer -Plans make homeowners difficult for Gen Z

Expectations from the past of a wave of houses to get on the market as soon as seniors go outside, fade away, with a majority of baby boomers who say they will not sell for another decade – or never.

A little more than a third or 33.5%of baby boomers have no plans to sell their current houses in their lives, according to new Redfin research. Similarly, another 30% thought they would wait at least at least a decade before they list their properties.

Redfin’s report throws cold water in the short term on earlier predictions of a “Silver Tsunami” from Inventory Arriving and possibly leading to oversupply. In the past decade, various housing research groups predicted a quarter of the currently occupied property to become available in the next 12 to 15 years when baby boomers were outdated from their property.

Instead, the findings will aggravate continuous challenges for younger generations who want to reach a homeowner, said Redfin Chief Economist Daryl Fairweather.

“With baby boomers who choose to go into place instead of selling, it is a challenge for younger buyers to find affordable options that fit their lifestyle,” Fairweather noted in a press release.

“While the inventory is improving, the range is short for young house hunters who are looking for family houses, especially in suburb where houses like starters are priced – but large enough for families – are scarce,” she added.

Even less chance of selling were members of the Pacific Generation born before 1946 still in their homes, with 44.6% in the hope of never moving, according to Redfin’s report.

Unlike their older cohorts, only about 25% of Generation X said that they had no plans to sell. In the meantime, only 21% of the millennials and members of Generation Z mentioned who bought real estate, their current home forever at home.

Among younger homeowners who expect to move, about 55% of Gen X said that their relocation would not take place for at least five years. For Millennials and Gen Z, the share was 47%.

Why baby boomers choose to get older

The current financial benefits for the homeowner, as well as the general satisfaction with their living situation, make staying desirable for many seniors.

The most common reason that was cited by the majority of baby boomers to choose not to move, was how much they loved their house. More than two -thirds said they had lived in their current home for at least 16 years. At the same time, 30% also chose to stay because they had already paid off their mortgage.

For some, the stimulans came to age to age on the same factors that influence the overall consumer Sentiment from Huizenmarkt – namely the impact of The locking effect.

Almost 16% said that the current housing costs were too high to consider a move, while 8% did not want to give up the mortgage interest they currently had.

Redfin’s data is in line with similar research published by Freddie Mac in 2024 who found more than two -thirds of homeowners over the age of 60 with a preference to retain their properties. In the Freddie Mac report, a clear majority wanted to leave their houses To their children.

How does this influence the mortgage market?

The tendency for baby boomers to stay where they have the effects of already scarce inventory and the resulting peak in housing values ​​that the mortgage industry has been plagued for years, Redfin said.

With the house prices that are almost 40% rising from pre-Pandemic level, a quarter of the current Millennial and Gen Z tenants are not on the market to buy because they cannot afford where they live, according to the survey of the real estate company.

Likewise, 31% of Baby Boomer’s households said that they could not afford to buy their houses today. Almost 90% of the units owned by the Boomer generation consists of single-family homes, so that constant downward pressure is applied to inventory that is suitable for young families.

However, the high levels of accumulated equity among older homeowners are leading to a noticeable revival In the interest of the consumer For the type of loan products who enable them to tap their wealth. The most recent estimates of Tappable Home Equity available for consumers older than 62 years, approached $ 14 trillion, according to the National Reverse MortGage Lenders Association.

Still, draw that opportunities open For prospective buyers, in the future and must come from different sources in the future, Redfin said.

“It is worth noting that although many older Americans say that they are not going to sell their houses, many probably break up, because it will be more difficult to live independently and/or keeping home maintenance,” Fairweather said.