Leave it to the Baby Boomers to do things their own way – this time in the real estate. Contrary to earlier generations, who typically downsized as they neared retirement age, this group is staying in the family home much longer.
What’s the big deal? By holding on to their homes they’re contributing to the low inventory of available real estate, thus driving up prices.
And the effect is compounded by the fact that by holding on to their homes, they are driving up prices for those smaller homes that Baby Boomers might prefer. Thus, those who do actually want to downsize and sell find that they literally can’t afford to do so.
But analysts point out that the Baby Boomers will not own this vast inventory – 32 million homes – forever and, eventually, change will come.