What Effects Will the ‘Silver Tsunami’ Have on the 2024 Housing Market?

High interest rates and housing prices continue to make purchasing a home an unattainable goal for many, but homebuying conditions for younger generations are likely to change as more Baby Boomers (currently about 20% of the U.S. population), reach the traditional retirement age of 65 and seek to downsize. From the availability of more homes on the market to the need for different housing types to accommodate downsizing Boomers, the housing landscape is heading for some changes.

Personal finance site GOBankingRates interviewed two real estate agents, Erin Hybart and Omer Reiner, about the possible effects of the "Silver Tsunami."

According to Reiner, the Silver Tsunami’s effects will vary across the country. In some markets, there could be a rise in available properties.

“Here in Florida, there will be at least three retirement-friendly cities — Orlando, Miami and Tampa — that expect older residents to free up more than 14% of available housing,” said Reiner. “Pair that with working-age residents seeing signs of wage increases and the widely expected mortgage rate cuts expected in 2024, these buyers look to have a lot of options!”

In other markets, there might not be as noticeable a shift. Or if there is one, it might take longer to make itself known.

As boomers downsize to smaller, more manageable homes, the demand for move-in ready or multi-generational homes could increase.

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