New Research from the Mortgage Bankers Association (MBA) examined the impact the aging and eventual death of the “baby boomer” generation may have on the housing market.
The study, entitled “Who Will Buy the Baby Boomers’ Homes When They leave Them,” used data on housing, demographics and mortality to assess the future supply and demand of homes.
“America is growing older, with baby boomer homeowners totaling 32 million as of 2019 and increasingly becoming a larger source of existing homes for sale—4.4 million units annually—as they transition to other housing options or pass away,” said Gary Engelhardt, author of the report and professor of economics at Syracuse University. “Aging and mortality are glacial and largely predictable. Based purely on changing demographics and population growth, there is enough homebuyer demand to meet most of the existing inventory that will come onto the market over the next decade and beyond from older homeowners.”
The MBA’s findings revealed that there will only be a “modest” excess supply of homes for sale, around 250,000 units through 2032, which will have no major impact on home prices as a whole.
“The impact from baby boomers exiting their homes is not insignificant but will happen over a few decades without significantly disrupting the housing market,” Edward Seiler, MBA’s associate vice president of housing economics, said.