Baby Boomers Affect on Housing
As baby boomers age, the decline of this mammoth generation will have a dampening effect on household growth. However, this decline in growth will occur over several decades and may be offset by the millennial generation starting households of their own.
But the big question is whether the housing left by baby boomers will be desirable to younger generations?
Many homes vacated by aging seniors will not be in demand by tomorrow’s young adults, being in the wrong part of the country or otherwise unsuitable. Some will be simply too expensive. Some ‘affordable’ vacated homes in desirable locations will be torn down and replaced by larger and more energy efficient/amenity rich houses targeted to older buyers. Many houses will sit on the market for long periods of time before sellers are willing to recognize that they are overpriced. Some homes in declining communities will become abandoned.