Redfin Finds 78% of Baby Boomers Plan to Stay in Current Home as They Age

(Image courtesy of Redfin; Breakout image courtesy of Kelly/pexels.com)

Redfin, Seattle, conducted a survey to determine Baby Boomers’ plans for where to live as they age. More than three-quarters said they plan to age in their homes.

Twenty percent either already have or plan to move into a 55-plus community.

Moving in with adult children and assisted living facilities were both at 10%. Finally, 6% listed moving in with friends.

The study, conducted in February, primarily polled Baby Boomers (currently 60-78 years old) as well as a much smaller group of members of the Silent Generation, who own their home.

Data like this is salient as there’s considerable discussion about home inventories and the “locked-in” effect. Other recent Redfin analysis found that empty-nest Baby Boomers own 28% of three-bedroom-plus homes in the U.S., compared with millennials with kids, who own just 14%.

About 80% of Baby Boomers own their own homes, compared with 55% of millennials.

Most, about 54%, don’t have a mortgage; for those who do carry a mortgage, it’s very likely at a lower interest rate than today.

“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,” Redfin Chief Economist Daryl Fairweather said. “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.”

Fairweather suggested politicians should focus on expanding housing stock that meets the needs of older Americans, “which could help with housing affordability and availability for all.”