As

baby
boomers
increasingly
seek
to
age
in
place
in
their
own
homes
—
a
scenario
supported
by
both
the
preferences
of
older
homeowners
and
the
realities
brought
on
by
elevated

mortgage
rates
—
this
is
clashing
with
the
desires
of

millennials
who
wish
to
enter
the
housing
market,
as
the
combination
of
limited
inventory
and
high
costs
are
keeping
these
buyers
on
the
sidelines
of
the
mortgage
market.

This
is
according
to

a
recent
column
published
by


Fortune,
which
examined
the
dynamics
that
could
contribute
to
boomers
staying
in
their
homes
longer
while
many
millennials
are
challenged
to
enter
the
housing
market
in
the
first
place.

Data
shared
with
the
outlet
indicated
that
baby
boomers
make
up
roughly
one-third
of
all
U.S.
homeowners.
They
have
added
incentive
to
stay
where
they
are
—
particularly
if
they
have
a
low,
pre-2022
mortgage
rate
or
their
home
is
paid
off,
the
column
stated.

“[I]n
our
current
environment,
where
mortgage
rates
skyrocketed
from
historic
lows
throughout
the
pandemic
to
a
more
than
two-decade
high
in
October
last
year,
being
mortgage-free
is
like
hitting
the
mother
lode,”
the
column
read.
“It’s
partly
why
boomers
aren’t
moving
—
because
why
give
up
no
mortgage
rate,
or
a
substantially
lower
one,
for
one
that’s
in
the
7%
range
plus
a
higher
monthly
payment?”

Other
factors
are
keeping
millennials
on
the
sidelines.
The
salary
needed
to
buy
a
starter
home,
for
instance,

has
nearly
doubled
since
the
start
of
2019,
according
to
data
from


Redfin.
Meanwhile,
inventory
levels
remain
at
historic
lows
that
contribute
to
a
severe
lack
of
affordability
across
the
country.

On
top
of
this,
baby
boomers
are
holding
onto
their
larger
homes
that
feature
three
bedrooms
or
more,
according
to

data
published
by
Redfin
in
January.

While
these
factors
combine
to
incentivize
baby
boomers
to
remain
where
they
are,
older
Americans
also
may
be
making
the
choice
to
age
in
place
based
on
comparisons
with
other
options,
such
as
dedicated
long-term
care
or
senior
housing
facilities.
By
and
large,
seniors
are
opting
to
remain
in
their
homes
—
and
even
to

undertake
significant
renovations
to
them
—
to
avoid
moving
to
such
facilities,
according
to
recent
reporting
from


The
Associated
Press.

But
not
all
boomers
and
millennials
are
locked
into
this
dynamic.
Recent
data
from
the


National
Association
of
Realtors
(NAR)
also
showed
that

millennials
recently
surpassed
baby
boomers
as
the
largest
homebuying
demographic.

“The
generational
tug-of-war
between
millennials
and
baby
boomers
continued
this
year,
with
millennials
rebounding
to
capture
the
largest
share
of
home
buyers,”
Jessica
Lautz,
NAR’s
deputy
chief
economist
and
vice
president
of
research,

said
in
the
report.

“This
notable
rise
is
attributed
to
both
younger
millennials
stepping
into
homeownership
for
the
first
time
and
older
millennials
transitioning
to
larger
homes
that
suit
their
evolving
needs,”
she
added.

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