Baby Boomers Refuse to Sell Homes as Younger Families House Hunt

A shortage of homes for resale is helping keep home prices up and beyond the reach of many would-be buyers. However, the majority of baby boomers who own many of the existing houses that could become the dream homes of young families have no interest in selling. Indeed, more than half believe younger generations could afford to buy a home if they tried harder or were more responsible.

These are the findings of a survey of 1,100 Americans born between 1946 and 1964 by Clever Real Estate, a St. Louis-based real estate company. The survey was conducted in July. Of the boomers surveyed, 61% currently own their homes, and 54% of them plan never to sell because they attribute much of their financial security to home ownership. Almost 90% also say it leads to a more stable home life. And 46% say they would consider themselves failures if they didn’t own a home. Only 15% expect to sell in the next five years.

However, 25% of boomer owners also want to stay put because a new home would cost more than they could afford as a result of inflation or because of the high costs of assisted living or retirement communities.

The reluctance to sell persists even though boomers can foresee significant profits from a sale. “Nearly two-thirds (65%) expect to profit more than $100,000 when selling their home, while 40% expect to clear $200,000 or more, much or all of it likely tax free. About 1 in 10 (10%) will pocket a cool half million or more in profit,” Clever said.

At the same time, elderly homeowners did share a number of concerns. Out of five, three worried about the cost of maintenance and upkeep and 55% feated about their physical ability to undertake these tasks. Half were concerned about property tax increases and 42% worried about rising utility costs.

Some 20% of boomers surveyed had never owned a home, and two-thirds of this group said they regretted it. A large majority of this group said they could not afford a home, while a quarter preferred to rent.

Almost 20% of boomers once owned a home but no longer do, usually because they could no longer afford it or because of health reasons. Among this group, 47% would not recommend homeownership to younger generations, while only 27% of their home-owning peers shared this view.

“Although just 56% of current boomer homeowners believe renting is easier than owning, 78% of previous homeowners feel this way, suggesting that many who make the switch are pleasantly surprised by their quality of life,” the report found.

Meanwhile, whether boomers decide to stay in their homes by making some accommodations or purchasing new ones, their wish lists offer plenty of work for remodelers. They include kitchens with lots of counter space, an attached garage, natural lighting, no yards to maintain, few or no stairs, ground-floor master bedrooms and grab rails in showers, as well as space for a live-in caregiver.