We need to rethink the generation blaming game. While some analysts believe that Baby Boomers are contributing to the inventory squeeze for future homebuyers, it seems as though boomers are feeling the pinch themselves.
According to Trulia, boomers are have been delaying moving for two reasons: their kids have been living with them longer, and they’re continuing to stay in the workforce. However, it seems as though 84.4% of boomers live by themselves, with no younger generation.
These working boomers seem to be working more than their predecessors; those 65 and over that are still in the workforce rose to 19.3% in 2016 from 15.9% in 2005.
Trulia reports that although this generation seems to be delaying downsizing, they’ve been doing it roughly at the same rate as previous generations. So, what gives?
It looks as though baby boomers are set to become the largest generation of retirees in America’s history – which means that an average moving rate feels and looks a lot slower. Not only that, but in order for this generation to move and downsize, they’re also needing homes to downsize into.
It looks like the housing market is in a pickle. It’s harder for baby boomers to downsize when they can’t afford to – leaving younger generations in a tight spot for the homes that are available.
If all generations are seemingly under the inventory pinch, it doesn’t seem like fair play to point fingers at the other.