A Mortgage Bankers Association (MBA) Research Institute for Housing America (RIHA) study has examined the impact of baby boomers’ aging and eventual death on the housing supply.
Results from “Who Will Buy the Baby Boomers’ Homes When They Leave Them” showed there will be over 4 million existing homes for sale each year over the next decade, with the stock coming from the aging and mortality of older homeowners.
Authorities also noted the sustained homebuyer demand from population growth and younger generation households should result in minimal excess housing supply and no measurable reduction in home prices.
“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,” Author of the report and Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University Gary V. Engelhardt said. “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.”
Research Institute for Housing America Executive Director and MBA Housing Economics Associate Vice President Edward Seiler said RIHA’s study used multiple data sources to give a detailed picture of the nation’s aging population and its impact on the housing market.
“The impact from baby boomers exiting their homes is not insignificant but will happen over a few decades without significantly disrupting the housing market,” he said.