Published by REALTOR.com | September 19, 2024
More than three-quarters of boomer homeowners say owning a home is the primary reason they’re financially secure.
Homebuyers hoping for a flood of homes to hit the market from aging baby boomers might be disappointed by the results of a new survey.
Among boomers who own homes, 54% say they never plan to sell the house they live in, according to a poll from Clever Real Estate.
Now in the age range of 60 to 78, boomers account for 21% of the U.S. population, yet they own 38% of the country’s homes, according to Freddie Mac data from 2022.
Their disproportionate hold over the housing market is understandable since homeownership rates tend to rise with age, up to a certain point. Historically, those rates begin to decline at age 75 as homeowners begin downsizing, with many eventually moving in with family or to assisted-living facilities.
But most boomers, it seems, have no interest in downsizing as they age. That’s despite the fact that nearly two-thirds of boomers who own homes said they expect to profit more than $100,000 if they sell their home, while 40% expect to clear $200,000 or more.
Explaining their reluctance to sell before they die, more than three-quarters of boomer homeowners say owning a home is the primary reason they’re financially secure. And nearly half said they would consider themselves failures if they didn’t own a home.
If the boomers are to be believed, their reluctance to sell their homes could reverberate through the housing market for years to come. Constraints on the supply of homes for sale have been a major issue in the U.S. housing market, sending home prices to a new record high over the summer.
The survey also found that just 47% of boomers said they had required a double income to purchase their home, a state Berner called “striking.”
Half of boomers who have owned a home said they had bought their first one for $75,000 or less, while almost two-thirds (64%) paid less than $100,000, the survey found. And only 6% of boomer homeowners said their biggest challenge when buying their first place was that homes were too expensive.
