Retirement often signals a major shift in a person’s life: many people choose to downsize or move to a more affordable area, or they opt to move in order to enjoy a different lifestyle. With Baby Boomers currently retiring in record numbers, the decisions they make in retirement can affect local economies as Boomer dollars and demand flow to different locales.
To find out which parts of the country are experiencing the greatest influx of Boomer dollars as a result of these shifts, financial technology company SmartAsset looked at 2023 mortgage data for 40 of the largest U.S. metro areas to find out where Boomers are buying homes at the fastest rate relative to the local population. Associated median interest rates, property values, and Boomer incomes were also taken into account.
It's not surprising that San Francisco—with property values in the range of $1.55 million—wasn't a favored destination for Boomers looking to move (the average new Boomer household median income is $216,000). The study found that Boomers are gravitating to these metros instead:
Baby boomers are buying homes at the fastest rates in Raleigh-Cary, NC. This metro saw 8,215 mortgages issued to homeowners in this age range in 2023, relative to a total population of just about 300,000 boomers. The Nashville metro area had the second-highest rate of boomers buying homes (11,410 mortgages issued) and the Phoenix metro ranked third with 27,745 new boomer mortgages.
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