While the hot real estate market of the last few years has cooled, many would-be younger homebuyers continue to struggle to purchase homes in the face of limited housing supply.
The current shortage of housing stock in the U.S. has many causes. In the wake of the Great Recession, the U.S. drastically underinvested in new homes, failing to keep up with the needs of the population. Zoning constraints and land use regulations in many communities make it difficult for construction companies and developers to build. More recently, during the COVID-19 pandemic, supply chain shortages and a tight labor market slowed the pace at which builders could complete new projects.
But one of the most significant trends affecting housing supply in the U.S. is the aging of the baby boomer generation. Baby boomers—those born between 1946 and 1964—currently own more than 30 million U.S. homes. Unlike previous generations that may have sold homes later in life to downsize, move in with family, or move to an assisted living facility, baby boomers have shown a greater propensity to age in place. And as older Americans hold onto their homes, less existing supply is available for new buyers entering the market.
Baby boomers have held a consistent share of real estate wealth in the U.S. for at least a quarter century. According to data from the Federal Reserve, baby boomer-owned real estate assets surpassed 40% of the U.S. total in the mid-1990s, and that number has hovered between 40–50% since. In the same period, Generation X and more recently the millennials have come of age and entered the market. Their combined shares of real estate wealth have grown from near zero to more than 45% today, but most of this growth has come from the decline of the Silent Generation, born 1928 to 1945. Data from the Census Bureau shows that while Americans over 65 represent just 17% of the population, they account for 32% of owner-occupied housing units.
One reason for the continued strength of baby boomers’ real estate wealth is that the generation has tended to stay in their homes for longer periods of time. As they age into their retirement years, baby boomers have proven reluctant to leave homes where they feel comfortable and where their costs are affordable. The result is that 38% of American homeowners aged 65+ have lived in their home for more than 30 years, and another 39% have lived in their current home for more than a decade. Only about one out of every five retirement-age households moved within the last 10 years.
That said, how long Americans are likely to remain in their homes varies widely by location. At the state level, the Northeast region—known for its high cost of living and lesser appeal to retirees—tends to have a larger proportion of seniors who have stayed in their homes the longest. Conversely, certain areas in the South and West—such as Florida, Arizona, and Nevada—which are popular retirement destinations, have a lower percentage of long-term homeownership among the 65+ age group. This is in large part attributable to a substantial influx of new retirees to these regions.
At the local level, the Northeast also dominates the list of cities where retirees have been in their homes the longest. Nine of the 15 major metro areas with the most long-term retiree homeowners are found in the Northeast. This includes five metro areas where more than 50% of homeowners aged 65+ have lived in their homes for over 30 years, led by the Pittsburgh metro area at 56.5%.
The data used in this analysis is from the U.S. Census Bureau. To determine the locations where retirement-age Americans have been in their homes the longest, researchers at U.S. Money Reserve calculated the percentage of 65-and-over households that moved in at least 30 years ago, with only owner-occupied households being considered.
The analysis found that residents aged 65 and older account for 29.7% of owner-occupied households in Georgia, with 34.0% having moved in 30 or more years ago. Out of all states, Georgia has the 14th smallest share of retirement-age residents who have lived in their homes 30+ years. Here is a summary of the data for Georgia:
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Share of 65+ households that moved in 30+ years ago: 34.0%
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Share of 65+ households that moved in 20+ years ago: 56.1%
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Share of 65+ households that moved in 10+ years ago: 77.2%
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Share of 65+ households that moved in less than 10 years ago: 22.8%
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65+ share of owner-occupied households: 29.7%
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65+ share of total population: 14.7%
For reference, here are the statistics for the entire United States:
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Share of 65+ households that moved in 30+ years ago: 38.2%
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Share of 65+ households that moved in 20+ years ago: 58.1%
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Share of 65+ households that moved in 10+ years ago: 77.1%
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Share of 65+ households that moved in less than 10 years ago: 22.9%
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65+ share of owner-occupied households: 32.3%
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65+ share of total population: 16.8%
For more information, a detailed methodology, and complete results, you can find the original report on U.S. Money Reserve’s website: https://www.usmoneyreserve.com/news/executive-insights/cities-retirees-in-homes-the-longest/
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