Staying Put

Rising mortgage rates and the housing affordability crisis have created a seismic shift in the real estate market. Baby boomers, who own a significant share of America’s homes, are staying put in unprecedented numbers. Nearly half say they’ll never sell, leading to ripple effects for younger generations and the housing industry at large. Today on LUXE BLOG, we're going over the reasons behind this trend and what it means for the future.

Baby Boomers & The Never-Sell Trend

A recent survey by Redfin found that baby boomers are the leading force in the "never-sell" phenomenon. This generational mindset is reshaping the housing market.

• 43% of baby boomers say they’ll never sell.
• Older Americans hold 37% of homeownership nationwide.
• Nearly 56% of baby boomers have stayed in their homes for over a decade.
• Rising home equity and stable, low-interest mortgages make selling unattractive.

Baby boomers, aged 60 to 78 in 2024, have benefited from decades of property value appreciation and relative affordability when they entered the market. This financial stability is enabling many to age in place, further tightening the inventory.

Also Read: The Impact Of The Lock-In Effect On Today’s Real Estate Market

Why Are Sellers Staying Put?

Several factors make moving unappealing despite rising home values.

• 39% cite near-paid-off mortgages as their main reason to stay.
• 30% blame high home prices for avoiding a new purchase.
• 18% are locked into historically low interest rates.
• Many simply love their current neighborhoods and lifestyles.

With mortgage rates now exceeding 7%, even those who might consider upgrading feel priced out. As a result, discretionary movers, those looking for nicer or larger homes, have exited the market.

The Impact On Younger Generations

Boomers’ hold on homeownership highlights a deeper affordability issue that younger buyers are grappling with. Millennials and Gen Z are struggling with rising costs and stagnant wages, making homeownership feel out of reach.

• Baby boomers own twice as many three-bedroom-plus homes as millennials with kids.
• Millennials and Gen Z are increasingly turning to alternatives like multi-generational housing or tiny homes.
• The share of homes owned by Americans aged 35-54 dropped from 42% in 2008 to 34% in 2023.

This disparity leaves many younger families stuck in rentals, unable to tap into the wealth-building opportunities that owning a home traditionally provides.

What Happens When Boomers Age Out Of Homeownership?

As baby boomers age, some experts are questioning whether this will eventually loosen the market. However, studies suggest that the impact will be modest.

• The Mortgage Bankers Association projects only 250,000 additional homes will hit the market annually due to boomer mortality over the next decade.
• Aging inventory poses a challenge: most homes owned by boomers are older and may require significant renovations.

Boomers' extended homeownership could create a renovation bottleneck, as inheriting millennials face costly upgrades for aging properties. This dynamic may redefine homeownership goals for younger generations, shifting toward alternative living arrangements or prioritizing affordability over traditional ideals.

Also Read: NAR Highlights The 10 Housing Markets In The U.S. For 2025!

Longer Homeownership Is The New Norm

The length of time homeowners stay in their properties has nearly doubled since 2006, with baby boomers leading the charge.

• The median length of homeownership peaked at 13.4 years in 2020 but remains high at 11.9 years in 2023.
• A majority of baby boomers (73%) have been in their current homes for 11 years or more.
• Most have no plans to move or renovate their properties.

This prolonged ownership, coupled with a lack of new inventory, intensifies the housing crunch. Without significant policy changes or shifts in market conditions, these trends are likely to persist.

What’s Next For The Housing Market?

The housing market’s future depends on balancing rising demand with limited inventory. Boomers’ decision to stay put is reshaping the landscape, creating challenges for younger buyers and potential bottlenecks in housing availability.

The "never-sell" trend isn’t just about aging in place; it reflects deeper economic realities, from rising mortgage rates to generational wealth gaps. For younger buyers, adapting to these constraints may mean redefining the American Dream into something new entirely.

Also Read: Housing Market Faces Challenges As Sellers Stay Put For Good