Any hope that older homeowners may soon downsize to free up family homes for Millennial buyers appears to be misplaced.
That’s because most Generation X and Baby Boomer homeowners say that their next move won’t be to something smaller; many will be buying bigger.
A survey from PulteGroup’s Del Webb brand, which builds communities for active adults aged 55+, has found that among 57% of respondents who are planning to move, 43% want something the same size as their current home and 22% want something larger.
“Rather than staying put, today’s 50- and 60-year olds are thinking ahead to their next big move,” said Jay Mason, vice president of market intelligence for PulteGroup. “While millennials seem to make the headlines, there are over 140 million Generation X and baby boomers in the United States, many with the means, confidence and desire to stay active in the housing market.”
More than 7 in 10 respondents want a single-family home and 63% want three or more bedrooms. Nearly three in 10 of Gen Xers want more space to accommodate their aging parents.
Moving out of the city
The intentions of older homeowners may free up some space in urban locations as 87% want to live somewhere suburban or rural next; 60% want somewhere quiet and tranquil.
“There has been an increased focus on where people want to move as they near retirement and if city living would become the preferred choice,” said Mason. “Data from our most recent survey clearly indicates that true urban living appeals to only a limited number of future retirees and that regardless of generation, both Gen Xers and baby boomers nearing retirement are looking for a different quality of life when considering their next move.”
More market update: