Baby Boomers control nearly 66% of today’s home equity, so it’s no wonder so much of the market rides on their future plans.
Whereas a majority of them plan to age in place, about 40% responded that they would like to move at least once more, according to Freddie Mac’s 55+ Survey.
The company surveyed 4,900 homeowners born before 1961, asking about their current housing situation and their future plans.
About 19 million Baby Boomers want to buy a home, with 8 million saying they want to do it within the next four years. Unfortunately for Millennials, about half of the 19 million said they are looking to pay less.
With that many potential homebuyers moving into the market, first-time homebuyers could struggle with the competition.
“I’m concerned about the current ability of the millennial generation to buy a home,” Trulia Chief Economist Ralph McLaughlin said earlier this Spring. “Right now, inventory pressures are keeping them from doing that.”
Of those who do not want to move again, about 23% said their homes need major renovations to remain accessible, and 34% would pay for the repairs by refinancing their mortgage.
“Whether the borrower is financing age-in-place renovations or buying a new house, even a relatively modest increase in lending to 55+ homeowners could add trillions of dollars in new originations in a relatively short time,” stated Sean Backetti, Freddie Mac vice president and chief economist.
