Economists are finding that the Baby Boomer generation is not downsizing in the predicted numbers. This may be exacerbating the already tight housing market.
“Several years ago there was an expectation that as baby boomers move into retirement, there would be a surge of homes hitting the market," said Zillow senior economist Aaron Terrazas. "That really hasn't materialized."
CBS’ MoneyWatch reports that Americans over 65 have the highest homeownership rate of any generation. Trends causing them to stay put include a later average retirement age and a growing number of adult children still living with parents. Americans are more often waiting until after age 80 to downsize, meaning the oldest Boomers, now 72, could remain in their homes for another decade.