Silver Tsunami Likely to Bring Wave of Wealth to Children of Baby Boomer Homeowners

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Freddie Mac
Freddie Mac

New research indicates Boomers hold $17 trillion of country’s total home equity

MCLEAN, Va., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Three quarters of homeowners born before 1964 are likely to leave much of their $17 trillion in home equity to their children, according to Freddie Mac’s (OTCQB: FMCC) latest analysis of the housing perceptions, preferences and plans of Baby Boomers.

Freddie Mac’s new, comprehensive survey of respondents 60 or older also highlights that the majority of Boomers who own a home feel confident they will have a financially comfortable retirement. This is accompanied by a growing preference of some Boomers to downsize.

“As the youngest Baby Boomers turn 60 this year, this research provides an opportunity to learn from a generation that has weathered multiple economic cycles and pivotal moments in recent history, including the Great Financial Crisis and pandemic,” said Sonu Mittal, SVP and head of Single-Family Acquisitions at Freddie Mac. “The value we see placed on homeownership and its contribution to the long-term financial success of American families underscores the importance of our mission to make home possible for more families across the country.”

Freddie Mac has surveyed and tracked the attitudes of Baby Boomers for nearly a decade. As of 2024, there were 65 million Baby Boomers, accounting for 20% of the U.S. population and 36% of total homeowner households. Total household net worth has increased by approximately $44 trillion, or $332,000 per household, since the pandemic (Q4 2019 to Q2 2024). Of that, Boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation.

This latest research follows two prior surveys, the first in 2016 and again in 2021, in which Freddie Mac sought to track Boomers’ attitudes and perceptions in several key categories. Key findings include:

Perceptions of retirement.

  • 68% of Boomer homeowners surveyed express confidence in having a comfortable retirement, regardless of race. This is down from 2016 (76%) and 2021 (81%).

  • Retired homeowners feel more confident than non-retired homeowners in believing they will have a comfortable retirement.

Aging in place remains preferable, but new trends have emerged.

  • Aging in Place: As in 2016 (66%) and 2021 (69%), Baby Boomer homeowners again feel confident they would remain in their current homes, with 68% of respondents indicating they either plan to age in place or do not have plans to move again.

  • Downsizing: However, of Boomer homeowners looking to move at some point in the future, 66% indicate they also plan to downsize, with nearly 9 out of 10 respondents currently owning a residence with three or more bedrooms. Of the Boomer homeowners who moved in the last decade, 36% say they downsized from their previous property.

  • Living Near Children: Of the 32% of Boomers who would consider living in a smaller, independent living area on someone else’s property, such as an accessory dwelling unit, the vast majority (68%) of Boomer parents would consider living on their children’s property.

  • Men vs. Women: 40% of women expressed a willingness to move in with their adult children in the future, while only a quarter of men felt similarly.