Baby Boomers Hold on to Houses

As a group, Baby Boomers appear to staying put for the time being. Most analysts have generally agreed that the number of residences for sale would surge in coming years as more people born between 1946 and 1964 trade in their large, detached single-family homes for condominiums or attached housing in more urban areas. But recent studies indicate that downsizing has yet to take shape and may not materialize to the extent suggested by some forecasts. New Census data shows that population growth for Americans over the age of 69 has been the lowest in the most dense counties — the only age demographic in which that is happening, reports Trulia Inc. chief economist Jed Kolko. Fannie Mae’s analysis of Census data finds that Boomers are becoming empty-nesters “in droves.” The oldest half of all such households that were comprised of a married couple with at least one child under age 18 declined to 3 percent in 2012 from 10 percent six years prior. Furthermore, the share of Boomers living in detached single-family homes was roughly the same in 2012 as in 2006, Fannie learned. Boomers may be slow to downsize for a number of reasons. For one, they may simply like their homes and do not want to move. In many cases, the after-effects of the housing bust and the Great Recession have prevented many from moving because they have insufficient equity or are unwilling to sell at prices that are still down from their peak of the last decade. Also, others who locked in low mortgage rates in recent years via refinancing may balk at moving now that rates have climbed. | Read More