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Baby boomers are aging in place and plunking down hundreds of thousands on renovating their homes
Fortune • • business
Key Points:
- Baby boomers constitute over one-third of all homeowners in the U.S., with more than half owning their homes mortgage-free, making them less inclined to sell amid rising mortgage rates that have reached nearly 7.5% in October 2023.
- Millennials face a challenging housing market with nearly doubled salary requirements to buy starter homes, record-high ownership costs, and low inventory, while baby boomers hold 28% of the largest homes, compared to millennials with kids owning only 14%.
- Many baby boomers prefer aging in place, investing heavily in home renovations to enhance comfort, safety, and accessibility, rather than selling and moving, partly due to a shortage of retirement homes and the financial benefits of staying mortgage-free.
- Renovation trends among baby boomers include universal design elements such as wheelchair-accessible features, non-slip flooring, and walk-in showers, reflecting their desire to remain in their homes long-term.
- Despite baby boomers holding large homes, millennials have become the largest generation of homebuyers, indicating some level of generational transition in the housing market.
