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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 74 May 2024 J O U R N A L BOOMERS ARE AGING IN PLACE, LEAVING MILLENNIALS WITH LIMITED OPTIONS L ions, tigers, and no homes avail- able, oh my! According to a new Redfin study, approximately 78% of older American homeowners intend to remain in their existing residence as they get older. Staying in one's present home is by far the most popular aging plan for older homeowners, according to a new Redfin survey asking baby boomers about their future living arrangements. Moving to a 55+ community is the second most popular strategy; 20% of baby boomers are either contemplating or have already moved into a 55+ community. The next two options mentioned by baby boomers are moving in with adult children (10%) and relocating into an assisted-living facility (10%), while moving in with friends comes in second (6%). Based on a Qualtrics poll that Redfin commissioned in February 2024, roughly 3,000 American homeowners and renters participated in the nationally represen- tative poll. According to Redfin's analysis, the outcomes for baby boomers who rent their homes are comparable to those for homeowners. Aging in Place Contributing to U.S. Housing Shortage Per the report, the significant lack of available properties for sale may persist Market Trends since most baby boomer homeowners intend to age in place. Homeowners who obtained extremely cheap mortgage rates during the recession are remaining there in order to avoid taking on a new rate at today's increased levels, which is largely the reason why inventory is sitting at his- torically low levels—although new listings have been growing in recent months. Those who own those homes are mostly baby boomers. According to a similar Redfin report, one reason young Americans are having trouble finding a family home is because baby boomers are staying put. Baby boom- ers with empty nests hold 28% of homes in the United States with three bedrooms or more, compared to just 14% owned by millennials with children. Compared to millennials, who own homes at a rate of 55%, baby boomers, who own homes at a rate of over 80%, have a disproportionately large impact on the housing market. More than half of baby boomers have resided in their houses for more than ten years, according to Redfin, which also revealed that older Americans' decision to remain in their homes is a major factor in the rising homeowner tenure and dearth of available properties. In conclusion, reduced supply ultimately drives up home prices, making the nation's housing afford- ability issue worse. Older Americans are Aging in Place Because it Makes Financial Sense The lack of financial incentives for baby boomers to sell their homes is a major factor in their continued ownership of them. When it comes to boomers who own homes, the majority (54%) have no mortgage, and of those who do, almost all have interest rates that are significantly lower than what they would pay if they sold and purchased a new home. Certain states' tax structures, such as those in Texas and California, also finan- cially favor seniors living in their homes as they get older. Furthermore, Americans can increasingly age in place because of technological and medical breakthroughs. "Older Americans are aging in place because it makes financial sense, but also because it's human nature to avoid thinking about challenging scenarios such as needing help as you get older," said