REALTOR Magazine
Downsizing baby boomers who are leaving homeownership behind may send shock waves throughout the real estate market, two new studies warn. “Homeownership demand from younger generations is insufficient to fill the void left by multitudes of departing older owners,” according to Fannie Mae’s Economic Strategic Research group. A separate study by the Stephen S. Fuller Institute at George Mason University says the significant number of older owners in relatively large homes in the Washington, D.C., market may lead to a “baby boomer sell-off” that could be mirrored in others parts of the country.
Baby boomers—those born between 1946 and 1964—own two in five homes in the country. The generations following them occupy only about 14 million homes.
Eventually, health or other issues will force baby boomers to move. Between 2016 and 2026, as many as 11.9 million older owners will end their homeownership status, according to estimates by Fannie Mae. From 2026 to 2036, another 13.1 million to 14.6 million will move as well.
