Baby Boomers Holding Onto Large Homes
Many baby boomers are holding onto their large homes even after their households have shrunk, limiting supply for younger generations. Financial factors and housing market conditions make downsizing unappealing for some boomers.
Key Points
- Baby boomers own twice as many large homes as millennials with kids.
- Financial factors like high costs of downsizing and mortgage lock-in effect deter boomers from selling.
- Policy changes and incentives are needed to encourage downsizing and create suitable housing options for older adults.
Pros
- Baby boomers can continue to enjoy their large homes with extra space for hobbies and visiting family.
- Staying in larger homes can be financially advantageous due to high costs associated with downsizing and lack of suitable alternatives.
Cons
- Limited supply of larger homes affects younger generations in need of more space.
- Mismatch between older homeowners and their current homes can lead to safety concerns and health risks.