It’s the cycle of life. As the aging baby boomer generation starts dying off, their homes will hit the market at an accelerated pace, according to a new report by Zillow. The report warned that over the next 20 years, more than a quarter of the nation’s currently owner-occupied homes (roughly 21 million homes) are likely to hit the market as their current owners pass away or otherwise vacate their homes.
Currently, 33.9 percent of owner-occupied U.S. homes are owned by residents aged 60 or older, and 55.2 percent by residents aged 50 or older. As these households age and begin vacating housing, that could represent upwards of 20 million homes hitting the market through the mid-2030s.
The report goes onto to explain that the number of homes coming to market could be a good substitute for new home construction, which has been in short supply for the past decade in large part because of difficult-to-overcome challenges faced by builders.
Not all regions will be impacted equally as retirement hubs (Miami, Orlando, Tampa and Tucson) and regions where young residents have left (Cleveland, Dayton, Knoxville and Pittsburgh) are the most likely to feel the impact of the deluge.
