Baby boomers are planning to stay put as they age, according to a new survey.
Redfin found that nearly 80% of boomers plan to keep their current homes as they grow older.
The sentiments could perhaps suggest a tighter outlook for existing home inventory. This comes as a shortage of houses for sale already exists today, with inventory at historically low levels, according to Redfin.
The main reason baby boomers want to age in place is money. About 54% of boomers have no incentive to move because they don’t have a mortgage, and those who do have a much lower interest rate than if they were to sell and buy another home.
Some states, like California and Texas, have tax systems that make it financially beneficial to stay put.
“Older Americans are aging in place because it makes financial sense, but also because it’s human nature to avoid thinking about challenging scenarios such as needing help as you get older,” Redfin chief economist Daryl Fairweather said in a press release.
“In reality, many homeowners and renters will need to move somewhere that better meets their needs as they age, like a senior-living community or a one-story home in an accessible neighborhood. But the government isn’t prioritizing building housing for seniors, which is further encouraging older Americans to stay put, exacerbating the inventory shortage,” Fairweather said. “Politicians should focus on expanding housing stock that meets the needs of older Americans, which could help with housing affordability and availability for all.”
Aside from boomers reporting they’ll stay in place, the second-most popular plan, which represented nearly 20% of boomers, was to move to a 55+ community. About 10% will move in with adult children or family.
SEE MORE: Report: $76K salary needed to buy starter home as down payments surge
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