Baby Boomers Not Showing Any Signs of Downsizing

Despite speculation of a rapidly approaching shift in housing preferences as Baby Boomers reach their golden years, a new Fannie Mae report states that most of them probably will not downsize anytime soon. The number of Boomers living in single-family detached houses actually rose slightly between 2006 and 2012 — more than 38 percent of “trailing boomers” (those born between 1956 and 1965) and 41 percent of “leading boomers” (those born between 1946 and 1955) occupied such residences. That is up from 37.9 percent and 40.7 percent, respectively, in 2006. A big reason for that may be the steady decline in home values in the past several years. In 2006, the average estimated value of single-family detached houses stood between $300,000 and $310,000. Six years later, it had fallen below $270,000. The report concludes: “Declining home values and the recession-scarred economy have suppressed boomers’ residential mobility, thus slowing the rate at which they can adjust their housing consumption.” | Read More