Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami

Debunking the Myth of the "Silver Tsunami" The term "Silver Tsunami" has been making waves, suggesting the baby boomer generation will soon flood the housing market with their homes as they move or downsize all at once. But let's dive into why this scenario is more myth than reality. Firstly, it's crucial to realize that not all baby boomers are keen to pack up and relocate. AARP research points out that over half of adults aged 65 and above intend to remain in their current residences. They prefer to 'age in place' rather than embark on a move. Moreover, for those who are content where they are, adapting their living spaces for comfort as they age is a common plan. And there's another group within this demographic that sees value in holding onto their primary homes while buying second properties, a move to enhance their family's wealth over time. A Gradual Shift Rather Than a Sudden Change For those boomers who do decide to move, don't expect them to do so en masse. It’s widely anticipated that their transition out of their homes will occur gradually over an extended period, defying the tsunami analogy. Freddie Mac foresees a gentle ebb of boomer homeownership cessation, expected to stretch out all the way to 2035. Echoing this sentiment, Mark Fleming from First American points out that demographic shifts are slow-moving by nature. Given the baby boomer generation spans nearly two decades, their collective housing market decisions will unfold over a similar timeframe. The Bottom Line There’s no reason to brace for the impact of a "Silver Tsunami." Instead, expect a gentle tide of change as the baby boomer generation's housing decisions gradually play out over many years.

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