January 28, 2019
How Retiring Baby Boomers are Approaching Homeownership
There’s a perception among the younger set that, as Baby Boomers age, they will naturally want to downsize from the homes in which they live. The nests are emptying, the theory goes, the Boomers are retiring, and large houses with many stairs should therefore be coming on the market, opening up the supply of single-family homes to make way for both Gen Xers and Millennials to buy (when they can afford it).
But this isn’t really the picture that has developed in recent years.
According to a report by Trulia, the fact is that more boomers said they would like to live in a larger home than that they want to live in a smaller one.
Granted, there’s an element of balance to this figure: 26% want a larger home, while 21% want a smaller one. The others? More than half of those surveyed said they’re happy to stay put and ride out the rest of their lives right where they already are.
Of course, this figure bears comparing to the younger generations. Gen Xers and Millennials are, indeed, clamoring for larger homes—in theory, at least.
60% of Millennials want to move into a larger home than the one in which they live now, the highest percentage among the generations, while just 13% of this set would like a smaller living space.
Generation Xers, meanwhile, have been reaching their prime earning years, making their hopes for upsizing a bit less pie-in-the-sky than those of Millennials. More of them have already achieved their perfect-sized home than among the Millennial set, at 38%, but only just barely. This may be because Gen Xers were the most affected generation in the foreclosure crisis, and may have been required to move into homes that are smaller than they may have hoped for. About 48% of those surveyed wanted a larger home, and only 14% of them would like a smaller one. This probably also has a lot to do with child-rearing, since this is the Generation most likely to have little ones outgrowing their small bedrooms and taking up an expanding zone of space.
All of this may have contributed to the inventory shortage in recent years. The Boomers aren’t moving out at the rate that the Xers and Millennials want to move in—so the homes that have become available are more prized as a result.
If you’re looking to buy a home—whether a starting home or an upsize—we at Topouzis & Associates, P.C. are experts at ferreting-out problems with title and disposing with them in advance of closing. We take pride in the great amount and quality of experience we bring to the closing table in Rhode Island, Massachusetts, and Florida. Contact us if you want a partner in your property closing—one who makes everyone involved feel like family.
