(NewsNation) — Over one-third of baby boomers who own their homes claim they will never sell them, according to a Redfin-commissioned survey.
The survey also found that an additional 30% say they will at least hold on to their home for a decade, but are willing to sell. Those who are older (the Silent Generation) are even less likely to sell their homes, with 44.6% saying they never would.
Younger homeowners, however, are on the opposite side of the spectrum. 21% of millennials/Gen Zers and 25% of Gen Xers said they would never sell their homes.
Many Baby Boomers have no incentive to sell: Survey
According to Redfin, these results could reflect the fact that many baby boomers don’t have the financial incentive that is typically needed to sell a home. Also, many older homeowners have lived in the same home for a while and prefer to stay where they are.
Around 67% of the baby boomers in the study had lived in their homes for at least 16 years. Fifty-five percent of baby boomers said they like their homes and have no reason to move, which is the most common reason they stayed.
Other common reasons included:
- Their home is almost or completely paid off: 30%
- Today’s home prices are too high: 16%
- They don’t want to give up a low mortgage rate: 8%
Housing prices increased by about 40% since before COVID: Redfin
Housing prices are up around 40% since before the COVID-19 pandemic, according to Redfin, with mortgage rates nearing 7%. That’s up from around 4% before the pandemic. Currently, 31% of baby boomers said they wouldn’t be able to own a home in a neighborhood similar to theirs in today’s economy.
This reasoning is also making it harder for younger Americans to find homes. 88% of homes owned by Baby Boomers are single-family homes, which also might not be large enough to fit an entire family. Only 5% are condos and 4% are townhomes.
An analysis by Redfin in 2024 showed that baby boomers are much more likely to have larger homes, despite most millennials and Gen Z homeowners having minor children living at home, compared to only 4% of Baby Boomers.
Redfin Chief Economist Daryl Fairweather said, “With baby boomers opting to age in place rather than sell, it’s challenging for younger buyers to find affordable options that fit their lifestyle. But it’s worth noting that even though many older Americans say they’re not planning to sell their homes, many are likely to eventually part ways as it becomes harder to live independently and/or keep up with home maintenance.”
Many millennials, Gen Zers won’t be purchasing homes anytime soon: Redfin
The study also showed that around 25% of millennials and Gen Zers won’t be buying a home anytime soon because they can’t afford one where they want to live. Other reasons include:
- Not being financially prepared for surprise costs: 23%
- High mortgage rates: 20%
- Unable to save for a down payment: 18%
At least supply is up, with nearly 500,000 more home sellers than buyers in the current market, according to Redfin. Redfin economists believe that home prices will decline by 1% by the end of 2025.
This survey was commissioned by Redfin and conducted by Ipsos in May. Around 4,000 residents were included in the survey.