Peter Beyer SVP, Finance & Operations | realtors.com
Baby boomers hold a significant portion of the U.S. real estate market, owning around 38% of properties while representing only a quarter of the population. Many in this age group have paid off their homes and are considering whether to sell as home equity reached 72.7% in mid-2024, the highest since 1958.
For some boomers, selling could mean cashing out on high property values and downsizing or relocating to more affordable areas. However, others may choose to remain due to rising housing costs and interest rates below 7%.
Cindy Stumpo, a developer from Newton, MA, explains that many boomers bought homes when "interest rates were higher, but the houses were still affordable." This allowed them to build substantial equity over time.
Hannah Jones from Realtor.com® notes that most boomers are not in their first homes anymore; however, those who are find their homes worth significantly more than when purchased.
A survey by Clever Real Estate reveals that over half of boomers (54%) plan not to sell their homes soon. Jeff Lichtenstein from Echo Fine Properties mentions safety concerns as a factor for moving closer to family or safer environments.
Real estate broker Angelica Ferguson VonDrak suggests that downsizing might be appealing if maintaining a larger home becomes burdensome. She advises assessing financial goals before deciding whether to sell or stay.
Boomers considering selling could use profits for retirement plans or new home purchases in lower-cost areas. For those staying put, leveraging home equity through loans is an option.
Andrew Latham recommends trying short-term rentals as an alternative for those unsure about moving permanently. Renting part-time allows exploration without fully committing financially.
Ultimately, VonDrak emphasizes that "the decision to sell or stay should reflect the life you envision now."
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