Over the next decade, the aging of the Baby Boom generation is projected to boost the number of homeowners age 65 and over by some 8.4 million, lifting their share of all homeowners to 38.1 percent, according to the State of the Nation’s Housing 2019 published this week by Harvard’s Joint Center for Housing Studies.
“While this surge in one- and two-person households might imply strong demand for smaller homes, most older adults plan to remain in their current homes as they age,” said the report. “To do so, though, many of these households will need to modify their homes to accommodate the physical limitations of aging, fueling strong growth in the remodeling market. But even if a minority of this large age group does choose to relocate, demand for smaller, more accessible homes should also increase significantly.”
Other highlights:
- The U.S. homeownership rate edged up again last year. After falling 5.6 percentage points between 2004 and 2016, the national rate increased 0.5 percent in 2017–2018, to 64.4 percent—roughly on par with the average rate in 1985 to 1995 before the latest housing boom and bust;
- The aggregate value of home equity for all households more than doubled between 2011 and 2018 from $7 trillion to $15.5 trillion after adjusting for inflation; and
- Median sales price of an existing home hit $259,300 in 2018, up from $177,400 in 2011.