Is A 'Baby Boomer Sell-Off' on The Way?
According to new research, there is the strong possibility of a "baby boomer sell-off" that could change certain markets. It Is all dependent on the attitude of older homeowners.
"Focusing solely on the Washington, D.C. metropolitan area, researchers at George Mason University’s Stephen S. Fuller Institute point to the significant amount of empty-nesters living in properties that might be too large for their current needs," according to Reverse Mortgage Daily.
"Using Census Bureau data, the team looked at the proportion of homeowners with “extra bedrooms” around the nation’s capital, defined as the number of bedrooms in excess of people who live at each property."
According to the research, there are more than a quarter of homeowners with two extra bedrooms between 2014 and 2016. This number represents about 270,000 homes, all of which had at least one resident ages 50 and older.
Should these homeowners decide to downsize, it could open up a ton of inventory in a mortgage market that has been struggling to meet the demand.
To learn more about the possible effects of a "baby boomer sell-off," click on the image above.