Hamilton Herald Masthead

Editorial


Front Page - Friday, May 31, 2019

Baby boomers: Why should we downsize?




Millennials are often talked about in regard to housing, but baby boomers, who are mostly between the ages of 54 and 73, are making news, as well.

A recent USA Today noted a growing number of baby boomers are choosing not to downsize in retirement. Instead, they’re opting to remain in the homes where they raised their children.

Their reluctance to move is contributing to low inventory across the country, says Danielle Hale, chief economist for realtor.com.

Baby boomers are working longer and, therefore, putting off retirement until later than previous generations. Also, their millennial children increasingly are living at home with them and staying well into adulthood.

Baby boomers also might be struggling to find a smaller home to move into. Housing analysts have pointed to a dire shortage of less-expensive, entry-level homes – the type downsizing baby boomers could be seeking.

The shortage has caused home prices to increase, and that might be erasing some of the incentive to downsize, housing analysts say.

Locally, the median sales price for April 2019 was $199,000. This is an 11.5% increase since April 2018 ($178,500).

About 52% of baby boomers say they’ll never move from their current home, a Chase Bank survey of 753 boomer homeowners conducted this year found.

Separately, 43% of 45- to 65-year-olds say they plan to remain in their current home through retirement, a 2017 Ipsos/USA Today poll found.

Also, downsizing might be losing its appeal.

For baby boomers who do plan to move, 43% say they want their next home to be the same size as their current one.

About 22% say they want their next home to be even larger, a January survey of 50- and 60-year-olds by Del Webb reports.

Whatever your housing situation might be, using a Realtor ensures that an expert is working on your behalf to make the transaction as smooth as possible. That’s who we R.

Greater Chattanooga Realtors® is The Voice of Real Estate in Greater Chattanooga. A regional organization with more than 2,000 members, Greater Chattanooga Realtors is one of some 1,300 local boards and associations of Realtors® nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade and Walker counties in northwest Georgia. Information: www.gcar.net, 423 698-8001.