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May 27, 2019

Baby Boomers: Why Should We Downsize?

I’ve noticed that millennials are often talked about in regard to housing, but baby boomers, mostly between the ages of 54 to 73, are making news as well. I read an article from USA Today which noted that a growing number of baby boomers are choosing not to downsize in retirement. Instead, they’re opting to remain in the homes where they raised their children. But their reluctance to move is contributing to low inventory across the country, says realtor.com® Chief Economist Danielle Hale.

Baby boomers are working longer and, therefore, putting retirement off longer than previous generations. Also, their millennial children increasingly are living at home with them and staying well into adulthood.

Baby boomers also may be struggling to find a smaller home to move into. Housing analysts have pointed to a dire housing shortage of less expensive entry-level homes—the type downsizing baby boomers could be seeking. The shortage has caused home prices to increase, and that may be erasing some of the incentive to downsize, housing analysts say. Locally, the median sales price for April 2019 was $199,000. This is a 11.5% increase just since April 2018 ($178,500).

Fifty-two percent of baby boomers say they’ll never move from their current home, according to a Chase Bank survey of 753 boomer homeowners conducted this year. Separately, 43% of 45- to 65-year-olds say they plan to remain in their current home through retirement, according to a 2017 Ipsos/USA Today poll.

And downsizing may be losing its appeal. For baby boomers who do plan to move, 43% say they want their next home to be the same size as their current one. Twenty-two percent say they want their next home to be even larger, according to a January survey of 50- and 60-year-olds by Del Webb.

Whatever your housing situation might be, working with a Realtor ensures that an expert is working on your behalf to make transaction as smooth as possible. That’s who we R®.

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