Retiring Baby Boomers

Much has been made on the potential effect that millions of retiring baby boomers will have on real estate supply/demand and prices. On the one hand, many have argued that the current boom in housing is being partially fueled by baby boomers, nearing retirement age, buying up second homes in vacation, or warmer areas of the country. If that is the case, then when the boomers do start to retire, will they sell their original home and live permanently in their newer second home? Assuming that most boomers will only want one home, it seems that there should eventually be a greater supply of “full-family” type homes available compared to the second vacation-type homes that older, retired, people might prefer.

Even if some boomers don’t have plans to retire anytime soon, or have a desire to move out of the current area they live in, they still might be looking to downsize to a less maintenance intensive house as shown in this article.