Redfin Survey

More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home As They Grow Older

(NASDAQ: RDFN) — More than three-quarters (78%) of older American homeowners plan to stay in their current home as they age, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Redfin asked baby boomers in a recent survey what they anticipate their living situation to be as they grow older, and staying in their current home is by far the most common aging plan for older homeowners.

The next most common plan is moving to a 55+ community; one in five (20%) baby boomers are considering moving into a 55+ community or have already done so. Next comes moving in with adult children, with 10% of baby boomers citing that as a possible plan, and moving to an assisted-living facility (10%). Those are followed by moving in with friends (6%).

These responses are based on a Redfin-commissioned survey conducted by Qualtrics in February 2024. The nationally representative survey was fielded to roughly 3,000 U.S. homeowners and renters. The results from baby boomers who rent their home are similar to the results for homeowners noted in Redfin’s report.

Aging in place is already contributing to the housing shortage, and is likely to continue doing so

The fact that the vast majority of baby boomer homeowners plan to age in place could prolong the shortage of homes for sale. Inventory is sitting at historically low levels (though new listings have started climbing in recent months) in large part because homeowners who scored ultra low mortgage rates during the pandemic are staying put to avoid taking on a new rate at today’s elevated levels. Many of those homeowners are baby boomers.

Baby boomers staying put is one reason young Americans are having a hard time finding a family home, according to a separate Redfin analysis. It found that empty-nest baby boomers own 28% of three-bedroom-plus U.S. homes, while millennials with kids own just 14%. Baby boomers have an outsized impact on the housing market because they’re most likely to own homes: Nearly 80% of boomers own the home they live in, compared to 55% of millennials.

Another Redfin analysis found that older Americans staying in their homes is already a driving force behind increasing homeowner tenure and the lack of homes for sale: More than half of baby boomers have lived in their home for over 10 years. Low inventory pushes home prices up, exacerbating the housing affordability problem in this country.