Baby Boomers Create Fresh Housing Supply
As Baby Boomers seek to cash in on their equity, downsize, or transition to other living arrangements, these factors will come into play with the influx of homes hitting the market over the next decade. This increase in the housing supply may help to create a solution for the increasing demand for homes and help to bring prices down as more homes come on the market.
Baby Boomers, between the ages of 59 and 77, are the demographic that's currently dominating home buying, making up 39% of home buyers.
According to AARP, “80% of people 50 or older own a home. As these homeowners start to downsize, or cash in on their equity, that will inevitably release more homes on the market.”
This allows for more volume of properties to be reintroduced in the housing market, creating more solutions for those searching to find a home. This influx will indeed be gradual over the next decade, so we can be on the lookout for more inventory over the next few years. With many of these folks relocating, specifically in Florida, experts expect to see a huge rate of opportunities for homebuyers as supply meets demand in this area.
In the coming years, as Boomers seek new opportunities, this creates millions of homes up for grabs for the younger generations, especially Gen Z. They will be in their prime homebuying years by this time, seeking the perfect starter home for their young household. For the oldest members of Gen Z who are currently envisioning their dream homes, the year 2030 will mark a significant milestone as they enter their 30s. By then, they can expect a wealth of opportunities and an abundance of choices to select from in the housing market.
Florida is an attractive destination for younger generations, offering them a significant advantage in kickstarting their homebuying journey. The timing of these Baby Boomers' relocating or looking to downsize will prove advantageous for the younger generations as they seek their ideal homes in the future. This demographic shift will also increase inventory and create even more opportunities for prospective buyers.
Samantha Minns
RWorld Content Writer
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Source: US News, Business Insider, Morning Star
