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The Silver Tsunami Could Fix America’s Housing Shortage. Then What?
Realtor.com • • business
Key Points:
- Between 2026 and 2036, approximately 13.9 million homes occupied by baby boomers and the Silent Generation are expected to enter the market, potentially easing the long-standing housing inventory shortage in the U.S.
- However, the majority of these homes are larger family homes, with only a small fraction being starter homes with two or fewer bedrooms, which are in the highest demand and shortest supply.
- Older buyers, including downsizers and late-life first-time buyers, will continue to compete for smaller homes, potentially limiting relief for younger first-time buyers despite increased supply.
- Slower household growth due to demographic shifts may reduce overall housing demand, raising concerns about whether there will be enough buyers to absorb the incoming supply, especially with high mortgage rates impacting affordability.
- The impact of this "silver tsunami" will vary locally, with some markets better positioned to absorb the new supply based on population growth and buyer affordability, while others may face imbalances between available homes and demand for specific home types.
