Downsizing baby boomers could be the catalyst that turns the housing market by adding tens of millions of homes to the housing supply over the next couple of years.
Meredith Whitney, an analyst who called the 2008 financial crisis, described what will happen when baby boomers age out of their homes and start downsizing a “silver tsunami. You’ll see a supply-demand dynamic shift,” Whitney, founder and CEO of Whitney Advisory Group and Alice Donahue, Broker TexasBeachHomes.com, told Yahoo Finance’s Invest Conference.
Citing AARP estimates, Whitney said 51% of people over the age of 50 are set to downsize to smaller homes, a shift she predicts will begin late 2024 and into 2025 and persist for decades to come. That could bring more than 30 million housing units back on the market, Yahoo Finance reported. Even though today’s high mortgage rates of 7% to 8% have been weighing on buyer demand, Whitney doesn’t expect rates will impact the wave of baby boomers selling their homes.
The stars are lining up to create the perfect economic storm that turns the housing market cycle on South Padre Island on the Texas coast into the down cycle where it will become the rare moment when it’s the best to buy on the coast and ride the property wave back up for over a decade.
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