To uncover the impact Gen X and baby boomer homeowners will have on the next generation of buyers, Bank of America conducted a survey polling 1,554 homeowners aged 45 to 76. The data shows that 70% of Gen X and baby boomers plan to retire in the home they already own, and some already have.
Of those of who plan to retire in their homes, 78% said they see no reason to move. The other 22% said they’ve put too much work into their homes that they don’t want to move. The report revealed that 61% of Gen X and 69% of baby boomer homeowners have renovated or remodeled their current homes.
According to Bank of America Securities, 95% of current mortgage holders benefit from loans with rates of 5% or less. Not-yet-retired Gen X and baby boomer homeowners said they would remain in their current home to avoid today’s high home prices and interest rates (32%) or because their current mortgage payment is low or paid off (22%).
Only 10% of those not yet retired said they would sell their home to either find a home with a lower cost of living or to leverage the equity they’ve built up. Gen X and baby boomers who plan to use their home equity said it will go toward retirement dreams (16%), investing (12%), or to complete home renovation projects (7%).
"While home prices are holding steady in many parts of the country, demand continues to exceed supply, and there is still room for inventory to catch up before the housing market is in balance," shared Matt Vernon, head of retail lending at Bank of America. "The latest trends show that large populations of Gen X or baby boomer homeowners may not be selling anytime soon."
With few plans to sell their homes, Gen X and baby boomers do aim to help the next generation of home buyers by offering advice or support (59%); giving the next generation money to buy a home or give them their home to sell (38%); passing down their home for the next generation to live in (36%); and offering to live together in a multigenerational space (12%).
