Downsizing Baby Boomers May Ease the Housing Crisis

In a segment on NPR, Wailin Wong and Darian Woods report on the potential ‘silver tsunami’ that could free up a significant number of U.S. homes.

As host Ari Shapiro explains, “We're talking baby boomers and empty nesters putting their homes on the market, boosting supply and bringing home prices down.” Older Americans are expected to downsize, potentially putting more larger, older homes on the market. 

As of 2022, 16 percent of U.S. households were ‘empty nesters,’ defined as people over 55 with no children at home who have at least two extra bedrooms and have lived in the home for over a decade. According to Zillow senior economist Orphe Divounguy, this is roughly double the number of families that need housing. 

However, the ‘empty nests’ are concentrated in areas that are already more affordable, such as Pittsburgh and Cleveland. Fewer exist in high-cost locations like New York City or San Jose. “So there's this geographical mismatch at play here. Even if downsizing empty nesters put their homes on the market, they'll be selling in cities that are already relatively affordable and where younger workers aren't choosing to move.”

Other hiccups include the fact that many older homeowners have paid off their homes, meaning they’re unlikely to want to take on a new mortgage. And if they do want to move, they are likely to want to live near younger family, in cities near the coasts — “and that could actually add to the upward pressure on housing prices.”