Baby Boomers Stay in Their Homes Longer, Driving Younger Households Toward Single-Family Rentals
April 9, 2023 | Richard Lawson | Costar.com
A growing number of seniors are staying in their homes longer and limiting the supply of houses for sale, and real estate executives and analysts say that’s combining with higher mortgage rates and a tight supply to push aspiring homebuyers toward single-family rentals.
Households made up of those at least 65 years old increased 51.2% between 2007 and 2021, far eclipsing the 4.4% gain among non-senior households, according to a study by economic advisory and data science firm Chandan Economics for multifamily lender Arbor Realty Trust. That has been a major force in limiting supply and increasing pent-up demand that the report concludes is “poised to continue growing.”
A big driver in that group are baby boomers, those 59 to 77 years old, who have been driving societal and cultural trends for decades. More of these seniors staying put means fewer opportunities for younger generations to buy, and those who aren’t in a position to purchase a house often end up planning to rent longer.
