Some 10,000 Baby Boomers reach retirement every day, exiting a world dependent on jobs and kids and into a new lifestyle that drastically adjusts their housing choices, a commentary by Patrick Simmons, director with the Economic and Strategic Research Group of Fannie Mae, said.
The common perception is that the generation born between 1946 and 1964 is starting to downsize from suburban single-family homes to urban multifamily residences as they become empty nesters.
But this assumption is not true, and in fact, the truth is quite the opposite.
Simmons explained, “Despite these life transitions, one key metric of boomer housing consumption – the proportion of the population residing in a single-family detached home – has yet to decline.”
And instead of the downsizing perception, the percent of Baby Boomers residing in single-family detached homes was at least as high in 2012 as at any time since the onset of the housing crisis.
This trend even includes the oldest members of the boomer generation, who have largely exited the childrearing stage and begun to retire in large numbers.
Furthermore, boomers are increasingly stepping away from the workforce. Between 2006 and 2012, the proportion of all boomers who were not in the labor force increased by 9 percentage points.
But despite all these variables, this generation is not leaving their detached single-family homes, but why?
1. They could simply love their current home.
2. Economic conditions and housing conditions force Baby Boomers to stay put.
3. They might not be able to find a home to buy.