The Silver Tsunami Is Coming: Why You Should Care

After months of enduring housing shortages across the nation, it is hard to imagine a sudden influx in inventory. But that is exactly what is going to happen when the Baby Boomers start aging out of their homes, triggering a Silver Tsunami that will return an estimated quarter of currently-owned homes to the market.

The massive Baby Boomer generation has already begun aging into retirement, and will begin passing away in large numbers in coming decades – releasing a flood of currently owner-occupied homes that could hit the market. That could help end the last few years’ inventory drought, as well as a more fundamental shortage of homes in certain places.

This Silver Tsunami of homes coming to market could be a good substitute for new home construction, which has been in short supply for the past decade in large part because of difficult-to-overcome challenges faced by builders.

Currently, 33.9 percent of owner-occupied U.S. homes are owned by residents aged 60 or older, and 55.2 percent by residents aged 50 or older. As these households age and begin vacating housing, that could represent upwards of 20 million homes hitting the market through the mid-2030s.

Read More