housing market

Generational Housing Shift: Gen Z’s Advantage as Boomers Pass the Torch

As baby boomers continue to dominate the housing market, holding nearly $19 trillion in real estate, questions arise about the future when this generation passes away. By 2040, the population of 80-plus-year-olds is expected to double, leading to a significant shift in the real estate landscape.

Economists predict a “silver tsunami” as aging boomers vacate homes, potentially leaving millions of properties available. While some experts foresee a gradual market change, others believe it may not impact prices as drastically as hoped by younger generations.

With boomers owning 41.6% of real estate wealth and 79% owning their homes, a substantial supply is expected to enter the market. Millennials may benefit somewhat, but their age and potential costly updates to aging boomer houses pose challenges.

However, the real winners could be Gen Z. With a smaller cohort and entering prime homebuying years in 2030, they may experience fewer market pressures. The timing of boomers’ exit aligns with Gen Z’s prime years, potentially easing the housing shortage for the upcoming decade.

Despite optimism, challenges exist. Not all subsequent generations may desire boomer-settled locations, and updates may be necessary for homes to appeal to younger buyers. The real estate industry remains unpredictable, but the impending generational shift may offer new opportunities for the housing market.

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