Downsizing Goes Bust for Boomers

Rising property costs are not just affecting young Americans—older people are ‘aging in place’ due to a dearth of affordable accessible housing

- ALISS HIGHAM

BABY BOOMERS WHO ENJOYED watching equity in their homes rise over recent decades are facing a new retirement problem: accessible and affordable homes in which to age.

Millions of Americans born before 1964 have benefited from skyrocketing house prices. But now, due to a glut of unfavorable conditions in the U.S. housing market, they are “aging in place” in their current homes—a trend likely to affect younger generations.

According to a recent Redfin study, 78 percent of boomers plan to stay put for retirement. And a 2022 Redfin report found that empty-nest boomers take up 28.2 percent of all “large homes”—three bedrooms or more—compared with 14.2 percent of millennials, who are more likely to have children still living at home.

Downsizing into a home designed with retirement in mind seems to be a distant prospect for America’s aging boomer population, yet retrofitting homes for accessibility is costly, particularly for those living on fixed incomes. “Baby boomers are increasingly choosing to ‘age in place,’ meaning they remain in their homes longer instead of selling to downsize or relocate,” New York City real estate broker Alexandra Gupta told Newsweek. “This trend is contributing directly to the housing shortage, as millions of homes that would otherwise be available to younger buyers remain occupied.”

Shortage of Accessible Homes

Accessible homes are scarce, with a slowdown in the building of new homes a major factor. A 2023 report by CNBC found that less than 5 percent of housing supply is accessible. In addition, U.S. housing inventory and the speed at which homes are being built are yet to return to levels seen before the 2008 financial crash.