The housing market will be booming … in 20 years

Green Escrow | Retirement

Zillow is calling it the “Silver Tsunami” in a new analysis in which they estimate that 27 percent of today’s owner-occupied homes will become available by 2037.

How did they come to this conclusion? It’s simply that as more and more of the Baby Boomer generation passes way their homes will become available. Zillow estimates that from 2017 to 2027 920,000 homes will become available annually and that between 2027 and 2038 that number will rise to 1.17 million homes annually.

This means that roughly 20 million homes will hit the market through the mid-2030s!

Baby Boomers: Downsizing but still spending

Green Escrow | Retirement

It’s estimated that approximately 10,000 baby boomers turn 65 and move towards retirement every day – and will be doing so until 2030. And, while they still possess a significant economic clout, boomers are adjusting their lifestyle to fit their current needs.

More often than not, this means downsizing – do they really need that 3-car garage or the large library. While the homes may be getter smaller, they’re still upscale – stocked with all the amenities and conveniences.

Finally, more retirees are now renting. In the last 13 years, rentals of family homes have increased from 9 million to well over 43 million. Many are finding they’ve had enough of ownership, the goal now is experiencing.

What Do Baby Boomers Want?

Green Escrow | Retirement

A new survey polling homeowners between the ages of 53 and 71 reveals that proximity to food is a prime consideration for these Baby Boomers. Proximity to a neighborhood grocery store ranks number one while the availability of nearby restaurants is listed as number two.

Keeping active is also important with nearby fitness centers and walking trails ranking high although golf courses only came in at number 49.

Baby Boomers May Compete with Millennials for Rentals

Green Escrow | Rental

Baby Boomers are no longer the the most populous generation group having been surpassed by Millennials and the two groups may soon be competing for affordable rental housing. Millennials have been slow to buy, due largely to high prices, low supply of housing inventory, employment uncertainty, and crippling student debt.

Somewhat surprisingly, Freddie Mac’s recent survey of those born before 1961 reveals that many expect to move again and rent. The common belief is that this will make sense economically but the current rates would suggest otherwise.

Some analysts believe that the combination of Baby Boomers and Millennials may provide added pressure and incentive for affordable rental housing.

Wanted: Affordable Housing for Seniors

Green Escrow Services senior housing

Make Room, a rental advocacy group, has recently issued a study noting that the senior population – ages 65 and older – rose 25 percent from 22.5 million to 28.1 million. More importantly the number of seniors paying more than half of their household income, before taxes, toward rent and utilities increased by an alarming 34 percent.

The study notes that many senior communities throughout the U.S. are at full capacity and some are even maintaining lengthy waiting lists.

Finally the study calls for more assistance in addressing the affordable housing needs of seniors and advocates tripling the $6.5 billion currently being spent on the tax credit program.