According to a new data report that will not be welcome by those seeking to buy existing homes, more than three-quarters (78%) of older homeowners plan to stay in their current home as they age.
A new survey of 3,000 homeowners and renters by Redfin (NASDAQ: RDFN), found the second most common plan was moving to a 55+ community (20%), followed by moving in with adult children (10%), moving to an assisted-living facility (10%) and moving in with friends (6%).
Redfin found that empty-nest baby boomers own 28% of three-bedroom-plus U.S. homes, while millennials with kids own 14%. And nearly 80% of boomers own the home they live in, compared to 55% of millennials.
Furthermore, the majority of boomers (54%) own homes with no mortgage – and for those who do have a mortgage, nearly all have a much lower interest rate than they would if they sold and bought a new home. And there is also an emotional attachment – more than half (51%) of baby boomers who aren’t planning to sell their home anytime soon said it’s because they like their home and have no reason to move.
“Older Americans are aging in place because it makes financial sense, but also because it’s human nature to avoid thinking about challenging scenarios such as needing help as you get older,” said Redfin Chief Economist Daryl Fairweather. “In reality, many homeowners and renters will need to move somewhere that better meets their needs as they age, like a senior-living community or a one-story home in an accessible neighborhood. But the government isn’t prioritizing building housing for seniors, which is further encouraging older Americans to stay put, exacerbating the inventory shortage. Politicians should focus on expanding housing stock that meets the needs of older Americans, which could help with housing affordability and availability for all.”
