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Study: Boomers Leaving Their Homes Will Dramatically Increase Housing Supply
An article by Issi Romen explains the findings of recent analysis by Zillow that predicts "more than a quarter (27.4 percent) of the nation’s currently owner-occupied homes are likely to hit the market" over the next 20 years as Baby Boomers pass away or move out of their single-family residential neighborhoods. As many as 20 million homes could hit the market through the mid 2030s, according to the analysis.
The impact of so many people vacating their homes all at once is likely to vary between markets, according to Romen, with traditional retirements hubs like in Florida and Arizona likely to experience the most effects from the transition.
"Housing released by the Silver Tsunami will provide a substantial and sustained boost to housing supply, comparable in magnitude to the fluctuations that new home construction experienced in the 2000s boom-bust cycle," according to Romen.
The Zillow study inspired news coverage by Laura Kusisto and Cassidy Araiza that resides behind the Wall Street Journal paywall.