– A recent survey reveals that over a third of baby boomers who own homes say they have no plans to sell, according to findings from the Redfin Committee.
Additionally, 30% of respondents indicated they might hold onto their homes for at least a decade, although they remain open to the idea of selling. Interestingly, the percentage of older adults from the silent generation who report never selling is even higher, at 44.6%.
In contrast, younger homeowners exhibit a different trend. Around 21% of millennials and Gen Z homeowners, along with 25% of Gen Xers, report they don’t have any intentions to sell their homes.
Many Baby Boomers Lack Incentives to Sell: Survey Insights
The survey suggests that financial motivations—often crucial for selling—may be minimal for many baby boomers. Many have settled in their homes for a long time and simply prefer to stay put.
Approximately 67% of the respondents from this age group have been in their homes for at least 16 years. Furthermore, 55% expressed satisfaction with their current living situation, offering it as the primary reason for not wanting to move.
Other common reasons include:
- Close to full mortgage repayment: 30%
- High home prices in the current market: 16%
- Desire to retain low mortgage rates: 8%
Increase in Home Prices Since Pre-Covid
According to Redfin, home prices have surged approximately 40% since the onset of the Covid-19 pandemic, with mortgage rates now around 7%, an increase from about 4% before the pandemic. Consequently, 31% of baby boomers feel that they couldn’t afford to buy a home similar to theirs in the current market.
This dynamic complicates the housing situation for younger generations. A staggering 88% of homes owned by baby boomers are single-family residences, which may not be spacious enough for growing families; only 5% are condos, and just 4% are townhomes.
A 2024 analysis by Redfin highlighted that despite many millennials and Gen Z homeowners having young children, baby boomers are far more likely to occupy larger homes.
Redfin’s Chief Economist remarked that it’s challenging for younger buyers to find affordable homes that meet their needs, with many older homeowners choosing to remain where they are. Nonetheless, while older Americans may claim they’re not planning to sell, the reality could present challenges regarding independent living and home maintenance as they age.
Millennials and Gen Zers Less Likely to Buy Homes Soon: Survey Findings
Further findings from the survey show that around 25% of millennials and Gen Zers aren’t planning to purchase homes anytime soon, mainly due to affordability issues. Other reasons include:
- Unprepared for unexpected costs: 23%
- High mortgage rates: 20%
- Difficulty saving for down payments: 18%
On a more positive note, the supply of homes is increasing, with nearly half a million sellers currently exceeding buyers in the market, according to Redfin. Economists from the firm predict a slight decline in home prices, estimating a 1% drop by the end of 2025.
This survey, conducted by Ipsos on behalf of Redfin in May, included approximately 4,000 participants.
