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IPFS News Link • Housing

The great downsizing begins! Boomers set to free up 9.2 MILLION homes for younger buyers...


Ageing baby boomers will free up 9.2 million homes by 2035 helping to ease housing shortages, a new report claims.

The generation, born between 1946 and 1964, currently own around 38 percent of American properties - despite accounting for only 21 percent of the population.

Fresh research by government-backed lender Freddie Mac suggests many of these homes will start to free up by Boomers selling up either to downsize or move in with relatives.

The report echoes predictions made by the so-called 'Oracle of Wall Street' Meredith Whitney who recently said a 'silver tsunami' was set to turn the housing market on its head.

'Boomers are overrepresented in the homeowner demographic because homeownership rates tend to increase as households age, gradually starting to decline as households age beyond age 75,' the Freddie Mac report stated. 

However researchers rejected the term 'silver tsunami,' claiming the trend would instead be a slower 'silver tide.'

The youngest Baby Boomers are set to turn 60 this year.

Freddie Mac said that the offloading of homes will be sharpest in the 2030 as many reach the ages of between 70 and 80.

By 2035 - when the oldest Boomers will be close to 90 years old - the 32 million homes owned by the generation will be slashed to 23 million.

However, researchers noted the analysis is based on previous generational patterns and may change as health outcomes and life expectancy for older Americans continues to improve.

Recent analysis by property portal Redfin found that homeowners today spend twice as long in their homes before selling up as they did in 2005.