In October, I wrote a blog titled The Biggest Housing Boom In History Has Just Begun. I pointed out how a massive surge of millennials, hitting peak homebuying age, will foster a huge increase in demand for housing.
But then in early November, I blogged about people staying in their homes much longer nowadays and how it is a major contributor to inventory shortages. So things looked somewhat bleak despite the future onslaught of millennial buyers.
But, some very good news recently surfaced in this Zillow article – The Silver Tsunami – Which Areas Will Be Flooded With Homes Once Boomers Start Leaving Them?
Long story short: Even though we baby boomers want to stay in our homes longer nowadays, we will all have to move in coming years simply b/c we are getting too old to stay.
Currently, 34% of owner-occupied homes are owned by boomers who are 60 or older, and 55% are over 50.
This means that as many as 20 million homes will hit the market through the mid-2030s!
Per Zillow, “in the decade from 2007 to 2017, roughly 730,000 U.S. homes were released into the market each year by seniors aged 60 or older. From 2017 to 2027 and from 2027 to 2037 that number is set to rise to 920,000 and 1.17 million per year, respectively, an addition of about 440,000 homes annually by the second decade.”
While the entire country will enjoy this surge in inventory, major retirement destinations will see the biggest effect.
In any case, the next 20 years will be a great time to be in both real estate and mortgages for those us who are ready to take advantage of the tremendous opportunities.
I highly recommend reading the full Zillow article linked above; it is very encouraging.
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