A new report from the Mortgage Bankers Association (MBA) Research Institute for Housing America (RIHA) says the housing supply across the country will remain tight as more Americans over 50 continue to “age in place.”
The research report said the housing supply will continue to be tight because older Americans will remain living in their homes for longer, and the homeownership rate for Americans over 50 will continue to increase. This will lead to excess demand for older Americans’ homes over the next decade, the report said.
The report updates a 2022 housing supply study and focuses on overall housing supply in the U.S. and homeownership trends for Americans over 50. The study also looked at how the COVID-19 pandemic affected housing decisions and how the housing supply is being impacted by increased life expectancy.
“The findings highlight the varying patterns for older Americans as shifting demographics, the pandemic, and overall buyer attitudes have impacted buying and selling decisions,” Edward Seiler, Research Institute for Housing America executive director. “It is evident that older households are aging in place, leading to updated predictions that show that there will be no excess supply of homes to the markets from older Americans moving or dying over the next decade.”
The report said that since 2015 there has been an increase in homeownership for Americans over 70. When combined with a larger base of older Americans from the aging Baby Boomers, this has led to more homes being held onto for a longer time. Before 2015, the study said, homeownership patterns would have predicted more of these homes would have been sold.
Statistics show that for Americans between 50 and 65, homeownership decreases, but after 65, homeownership increases. When combined with a higher base of 65-to 70-year-olds, the trend means there are almost 2 million more homeowners in 2022 than in 2015. The data shows that there will be 7 million more homeowners between the ages of 65 and 85. Over the next decade, the study said, there will be excess demand for homes for sale as older homeowners age and die.