When Will Baby Boomers Begin Downsizing?

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Despite media reports to the contrary, baby boomers do not appear to be moving from single-family homes into multi-family housing. In fact, the number of baby boomers living in a detached, single-family home increased between 2006 and 2012, according to a recent study from Fannie Mae. As baby boomers retire and their adult-age children leave home, it is expected that they will begin to abandon their traditional single-family homes and move into smaller, more manageable residences. The expected downsizing will have a significant impact on the housing market and is seen as inevitable despite the fact that there has been no evidence as yet that it is happening, even among the oldest boomers. According to the report, the reason these homeowners have yet to begin moving from their homes is due to the recent housing crash and recession. Declining home values and a shaky economy meant baby boomers who may have wanted to downsize were unable to due to economic conditions. Eventually, these homeowners will move, put their homes up for sale and significantly alter the housing market’s current landscape. More here.