Boomers Bought Up the Big Homes. Now They're Not Budging. [View all]

[dalton99a]

https://www.wsj.com/economy/housing/baby-boomers-big-homes-real-estate-inventory-3a047cb6

https://archive.ph/gA6oM

Boomers Bought Up the Big Homes. Now They’re Not Budging.
Many empty-nesters are staying put rather than downsizing, keeping housing inventory tight
By Rachel Louise Ensign and Rachel Wolfe
April 13, 2024 9:00 pm ET

Baby boomers bought up many of the big homes across the U.S. when they were raising their families. Now they’re staying put, even though their kids are all grown up.

Boomers are on top in a housing market where tight inventory, higher interest rates and steep prices are making homeownership less affordable for the average family. Many of these older homeowners paid off their mortgages on properties that have appreciated tremendously in value.

Some are happy with their big houses. Others would like to downsize, but are deterred by the same high costs that are restraining other prospective buyers on lower rungs of the housing economy. Many are working longer or planning on an active retirement, and are in no rush to move to a retirement community.

The problems, though, are deeper than boomers not moving.

Home-building activity plummeted during the housing crisis and remained depressed for years, contributing to a historic decline in the construction of new homes and a housing shortage. A rapid run-up in interest rates over the past two years sent mortgage rates soaring.

And older homeowners downsizing in droves wouldn’t actually solve the overarching issue that there are not enough homes on the market. Instead, it would likely lead to more competition for smaller homes.

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