Most Baby Boomers want to live in their current homes for the rest of their lives, according to a new survey, raising questions about whether seller’s agents and housing policy experts can look to seniors for a fresh pulse of housing inventory just as Millennials are in their prime homebuying years.

The survey of over 1,500 American homeowners aged 60-75 was done by American Advisors Group, a reverse mortgage lender.

Eighty-two percent of survey respondents said they would prefer to live out their remaining years in their current home if they can, relying on services like home health aides instead of decamping to an assisted living facility. The pandemic impacted about half of survey respondents’ decisions, making them more inclined to avoid nursing homes and other facilities which became the sites of many COVID-19 deaths. Two-thirds of survey respondents said they had told their children of their desires.

American Advisors Group suggested that, with 55 percent of survey respondents reporting that they had paid off their mortgages already, the stage could be set for a revival of interest in reverse mortgages, which gained a stigma during the Great Recession.

“Our studies have shown that seniors in this country have a strong attachment to their home and the pandemic only strengthened that bond,” AAG Chief Marketing Officer Martin Lenoir said in a statement. “It’s no secret that many seniors have built substantial equity in their homes after years of ownership, but what is interesting is that very few want to sell their house to obtain that money. For seniors, the comfort, safety and independence of their home outweighs the desire to move and that’s why we’re seeing so many older Americans interested in reverse mortgages.”

There’s a lot riding on whether Baby Boomers, who are the biggest generational cohort in American history, will sell their homes and move into assisted living facilities. Previous generations tended to chose assisted living or downsizing over aging in place, freeing up family-sized housing inventory for younger buyers to purchse.

A recent Zillow analysis of Census Bureau data showed that, going into 2020, homebuyers over 60 were an increasing proportion of the market, making up 21.4 percent of Greater Boston buyers compared to the 14.4 percent they represented in 2009. The increase came as tens of millions of Millennials entered their prime homebuying years, resulting in a titanic demographic clash that pitted Boomers with more down payment savings and home equity against cash-poor Millennials armed with the lowest mortgage interest rates in 50 years.

Report Pours Cold Water on ‘Silver Tsunami’ of Inventory

by James Sanna time to read: 2 min
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