A majority of adults 65 and older (79%) are homeowners, and they own 34% of owner-occupied houses in the U.S., according to an analysis by the National Association of Home Builders. Fewer older homeowners are transitioning out of their homes, which has resulted in a trend called the “silver tsunami.”
“As older Americans stay in their homes longer, the silver tsunami phenomenon won’t solve the housing shortage on its own; therefore, expanding the housing supply becomes more urgent, not less,” NAHB Chairman Bill Owens said. “We must create pathways for all generations who aspire to achieve homeownership by reducing barriers to housing attainability.”
What complicates the situation is the increasing age of the housing stock held by older homeowners. NAHB’s analysis found that in the top 100 metro areas, larger populations of older homeowners mean a larger number of older homes. By the time these homes enter the market, they are unlikely to be direct substitutes for newer construction, with many requiring significant renovation or even redevelopment.
Read the full report here.
