Downsizing baby boomers competing with millennials for housing

Both baby boomers and millennials are competing against each other for condos and apartments across the country, according to a new article from The Washington Post.

According to the article, there are 70 million baby boomers and around 10,000 are retiring each day. About half of those retirees are planning to move to a smaller property, making condos and apartments appealing to them. Surprisingly, many of these retirees are moving to urban areas, which in the past were usually most popular with younger people.

However, just because some retirees are downsizing, some still-working baby boomers are also moving to smaller, more metropolitan areas, seeking to change their lifestyle and looking for less household responsibilities, such as mowing the lawn and cleaning a larger suburban home.

Financial reporter and author Ylan Q. Mui reported that baby boomers are buying condos and renting apartments at more than double the rate of millennials.

According to the Harvard University Joint Center for Housing Studies, people 55 and older are responsible for 42 percent of the rise in renter households since 2005. This is making demands for rentals larger, which in turn, increases the cost of rentals. However, it is also making rentals more difficult to afford for millennials, many of whom are loaded with student debt and struggling to find high-paying jobs.

According to Mui, this new trend of baby boomers migrating towards condos and apartments is helping high-end apartments and condos make a comeback. Baby boomers typically like larger apartments with nicer amenities that remind them of their family homes they are moving on from. This is creating a larger market for these types of properties, with less extravagant properties taking a back seat.

Nationally, the cost of rent has skyrocketed over the past few years. Since the recession, rent has hit a high of $803 a month, according to the Post.

Millennials are the largest segment of the U.S. population, with baby boomers not far behind. Both of their housing decisions impact the national market, and their competition for condos and apartments may continue to drive rent up.