Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami

<article class="post-995633 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-995633"><span class="entry-date">April 4, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Boomers+Moving+Will+Be+More+Like+a+Gentle+Tide+Than+a+Tsunami&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fboomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
<div class="fb-share-button display-inline-block" data-href="https://gilliggroup.com/blog/boomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami/" data-layout="" data-size=""><a class="facebook solid fb-xfbml-parse-ignore" data-tracking="Post,Social Post Link Clicked,Twitter" href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fboomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami%2F&amp;src=sdkpreparse" target="_blank"><span class="force-hidden">Facebook</span></a></div>
<a class="pinterest solid display-inline-block" count-layout="horizontal" href="https://pinterest.com/pin/create/link/?url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fboomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami%2F&amp;description=Boomers+Moving+Will+Be+More+Like+a+Gentle+Tide+Than+a+Tsunami" target="_blank"><span class="force-hidden">Pinterest</span></a>
<a class="linkedin solid display-inline-block" href="https://www.linkedin.com/shareArticle?mini=true&amp;url=https://gilliggroup.com/blog/boomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami/?shareSlug%3Dboomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami" target="_blank"><span class="force-hidden">LinkedIn</span></a>
<a class="email dashicons dashicons-email solid display-inline-block" href="mailto:?subject=From gilliggroup.com: Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami&amp;body=Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami%0D%0Dhttps://gilliggroup.com/blog/boomers-moving-will-be-more-like-a-gentle-tide-than-a-tsunami/" target="_blank"><span class="force-hidden">Email</span></a>
</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240404-Boomers-Moving-Will-Be-More-Like-a-Gentle-Tide-Than-a-Tsunami.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Have you heard the term “Silver Tsunami” getting tossed around recently? If so, here’s what you really need to know. That phrase refers to the idea that a lot of baby boomers are going to move or downsize all at once. And the fear is that a sudden influx of homes for sale would have a big impact on <a href="https://www.simplifyingthemarket.com/2024/03/15/the-latest-trends-in-housing-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">housing</a>. That’s because it would create a whole lot more competition for smaller homes and would throw off the balance of supply and demand, which ultimately would impact home prices. </p>
<p>But here’s the thing. There are a couple of faults in that logic. Let’s break them down and put your mind at ease. </p>
<h4><strong>Not All Baby Boomers Plan To Move</strong></h4>
<p>For starters, plenty of baby boomers don’t plan on <a href="https://www.simplifyingthemarket.com/2024/03/08/the-spring-market-is-a-sweet-spot-if-youre-looking-to-sell-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">moving</a> at all. A <a href="https://www.aarp.org/content/dam/aarp/research/surveys_statistics/liv-com/2021/2021-home-community-preferences-chartbook.doi.10.26419-2Fres.00479.001.pdf" rel="noopener noreferrer" target="_blank">study</a> from the <em>AARP</em> says more than half of adults aged 65 and older want to stay in their homes and not move as they age (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240401/20240328-60-percent-of-adults-age-65-expect-to-stay-in-their-home-as-they-get-older.png" rel="noopener noreferrer" target="_blank"><img alt="a pie chart with text" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240401/20240328-60-percent-of-adults-age-65-expect-to-stay-in-their-home-as-they-get-older.png"/></a></p>
<p></p>
<p>While it’s true circumstances may change and some people who don’t plan to move (<em>the red in the chart above)</em> may realize they need to down the road, the vast majority are counting on aging in place. </p>
<p>As for those who stay put, they’ll likely modify their homes as their needs change over time. And when updating their existing home won’t work, some will buy a second home and keep their original one as an investment to fuel generational wealth for their loved ones. As an article from <em>Inman</em> <a href="https://www.inman.com/2024/01/19/what-experts-have-right-and-wrong-about-the-silver-tsunami/" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“Many boomers have no desire to retire fully and take up less space . . . </em><strong><em>Many will modify their current home, and the wealthiest will opt to have multiple homes.”</em></strong></p></blockquote>
<h4><strong>Even Those Who Do Move Won’t Do It All at Once</strong></h4>
<p>While not all baby boomers are looking to sell their homes and move – the ones who do won’t all do it at the same time. Instead, it’ll happen slowly over many years. As <em>Freddie Mac</em> <a href="https://twitter.com/FreddieMac/status/1763285511442166042" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“</em><strong><em>We forecast the ‘tsunami’ will be more like a tide</em></strong><em>, bringing a gradual exit of 9.2 million Boomers by 2035 . . .”</em></p></blockquote>
<p>As Mark Fleming, Chief Economist at <em>First American</em>, <a href="https://finance.yahoo.com/news/tides-changed-housing-market-experts-113000181.html" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“</em><strong><em>Demographics are never a tsunami. </em></strong><em>The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”</em></p></blockquote>
<h3>Bottom Line</h3>
<p>If you’re stressed about a Silver Tsunami shaking the <a href="https://www.simplifyingthemarket.com/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">housing market</a> overnight, don’t be. Baby boomers will move slowly over a much longer period of time.</p>
</div>
</div></article>