Don’t Write Off the Baby Boomers Just Yet

BOSTON-It’s been said time and again over the past few years that demographic trends will favor the rental multifamily market in the near future. Yet even with a wave of young adults entering the workforce, the large cohort at the other end of the demographic scale—baby boomers—will likely serve to keep the homeownership rate steady. At least, that’s the contention of Gleb Nechayev, vice president and senior economist with CB Richard Ellis’ Econometric Advisors Team here.

The likelihood of owning a home increases according to age. Accordingly, three-quarters of households under the age of 25 choose to rent, whereas 83% of households ages 70-74 and 80% of households aged 60-64 own their residences—around the same level as middle-aged households. The homeownership rate has been on a steady incline since the early 1980s; in fact, more households over the age of 60 own homes today than they did 20 years ago, even after the implosion of the housing market.