The sheer numbers of the babies born in the years after World War II have given them, the members of the boomer generation, clout their whole lives. Now as they age, downsize, and eventually die, a wave of homes will be released onto the real estate market in the coming years, with rippling effects.
A recent study by Zillow predicts that this substantial and sustained boost to housing inventory during the next two decades will have the greatest impact in places that are retirement hubs, such as Miami and Tucson, Ariz., as well as cities where younger residents have mostly left, like Cleveland and Pittsburgh.
The construction industry could also be strongly affected, possibly needing to place a greater focus on updating existing properties rather than new construction, the Zillow (Z) – Get Report report says.
Vibrant regions featuring fast growth and affordable housing that draw younger residents, such as Atlanta and Austin, Texas, are less likely to be affected.
Currently, 33.9% of owner-occupied U.S. homes are owned by residents age 60 or older, and 55.2% by residents aged 50 or older. As these households age and begin vacating their homes, it could mean as many as 20 million homes hitting the market through the mid-2030s.
According to Zillow’s report, these are the cities and metropolitan areas that will have the highest share of what are now owner-occupied homes released into the market by people over 60 in the next two decades. READ MORE: https://www.thestreet.com/personal-finance/as-boomers-age-this-is-where-the-most-homes-will-go-on-the-market