BAKERSFIELD, Calif. (KERO) — For years, housing analysts predicted a "silver tsunami." As baby boomers retired, they were expected to sell their larger homes, downsize, and open up inventory for younger families. But that wave hasn't arrived.
Paris Davis, president of the Bakersfield Association of Realtors, says several factors are keeping boomers in place.
"Boomers were concerned about leaving what they had known. You take someone who has lived in a 4,000-square-foot home and say 'hey, you're going to have a social life over here, but you're in 1,200 square feet,' that's quite an adjustment," Davis said.
Many boomers have paid off their mortgages or locked in very low interest rates. With fewer homes available, finding a new place that offers the character and space they're used to can be difficult. Some are also keeping the extra space for adult children and their families.
Economics professor Aaron Hegde says 58% of baby boomers have paid off their mortgages. According to Redfin data he cited, boomers own about 35% of three-bedroom-or-larger homes in the U.S.
"A lot of these baby boomers are not selling their houses, then the supply is even less and then the price of each of these goes up. Which means it's less and less affordable for younger families," Hegde said.
That creates a particular problem for younger families looking to move from a starter home into something larger. But Hegde says boomers staying put is not the main reason housing is so expensive.
He says the bigger issue is a long-standing shortage of housing, made worse by the pandemic, higher construction costs, and higher interest rates.
"If we increase the supply even more, then maybe the price would come down because of the supply, but for now the supply isn't enough, and given all these constraints the prices keep rising," Hegde said.
Davis says she doesn't expect a sudden flood of boomer homes to hit the market anytime soon.
"That would have to be done in droves, and I don't necessarily foresee that. Unless, as people start to pass on, then those that inherit that will probably sell, then that's where we would probably see a greater turnaround," Davis said.
For future buyers, the advice is simple: plan ahead, save early, build your credit, and buy with your budget in mind.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Stay in Touch with Us Anytime, Anywhere:
