Just a few charts today to make a simple point regarding the present and future of the housing market.
1960 through 2019
Potential Home Sellers
1- 65+ year-olds have the highest homeownership rate, presently 78% of these folks own their own home and they are over-represented in rural areas
2- 65+ year-olds now account for over 75% of the net annual population growth in America (red columns below)...with annual 65+ growth rising from +0.3 million in 1960 up to +1.6 million as of 2019
3- 65+ year-olds also account for 75% of annual deaths (grey negative columns below)...with elderly deaths accelerating from -1.1 million annually in 1960 to -2.1 million as of 2019 (to clarify, in 2019 this means +3.7 million enter the 65+ crowd but 2.1 million exit...leaving a net increase of +1.6 million)
4- When elderly die, there are a couple options for their property...
-A) will it to their heirs
-B) sell it to settle their affairs (as in the case of reverse mortgages)