Freddie Mac Finds Boomers Hold $17 Trillion of Country’s Total Home Equity
(Illustration courtesy of Freddie Mac)
Three-quarters of homeowners born before 1964 are likely to leave much of their $17 trillion in home equity to their children, according to Freddie Mac’s latest analysis of Baby Boomers’ housing perceptions, preferences and plans.
Freddie Mac’s new survey of respondents 60 and older also found that the majority of Boomers who own a home feel confident they will have a financially comfortable retirement. This is accompanied by a growing preference of some Boomers to downsize.
“As the youngest Baby Boomers turn 60 this year, this research provides an opportunity to learn from a generation that has weathered multiple economic cycles and pivotal moments in recent history, including the Great Financial Crisis and pandemic,” Freddie Mac SVP and Head of Single-Family Acquisitions Sonu Mittal said.
There are roughly 65 million Baby Boomers, accounting for 20% of the U.S. population and 36% of total homeowner households. Total household net worth has increased by approximately $44 trillion, or $332,000 per household, since the pandemic (Q4 2019 to Q2 2024). Of that, Boomer overall wealth increased by $19 trillion, or $486,000 per household–half of which is due to house price appreciation, Freddie Mac reported.
Key findings of the report include:
68% of Boomer homeowners surveyed express confidence in having a comfortable retirement, regardless of race. This is down from 2016 (76%) and 2021 (81%).
Retired homeowners feel more confident than non-retired homeowners in believing they will have a comfortable retirement.
Aging in place remains preferable, but new trends have emerged. As in 2016 (66%) and 2021 (69%), Baby Boomer homeowners again feel confident they would remain in their current homes, with 68% of respondents indicating they either plan to age in place or do not have plans to move again. However, of Boomer homeowners looking to move at some point in the future, 66% indicate they also plan to downsize, with nearly 9 out of 10 respondents currently owning a residence with three or more bedrooms. Of the Boomer homeowners who moved in the last decade, 36% say they downsized from their previous property.
Of the 32% of Boomers who said they would consider living in a smaller, independent living area on someone else’s property, such as an accessory dwelling unit, the vast majority (68%) of Boomer parents would consider living on their children’s property.
Four women in ten expressed a willingness to move in with their adult children in the future, while only a quarter of men felt similarly. Younger generations are positioned to receive trillions in home equity from Boomers with proper estate planning.
