Seventy percent of Gen X and baby boomers plan to retire in the home they own if possible.
According to Bank of America’s 2022 Homebuyer Insights Report, 76% of baby boomers plan to retire in a home they owned prior to retirement, as do 60% of Generation X. Just 13% of baby boomers and 27% of Gen X plan to move into a property they purchased just for retirement. For the majority (78%) of those who plan to stay, they said they liked their current home and see no reason no move, while 22% said they have done so much work on their home, they want to stay put.
Additionally, financial aspects come into play. If they were to retire today, nearly one-third of boomers and Gen X said that high mortgage rates and home prices would keep them in their current home, while 20% said their mortgage is paid off or close to it, so they would stay. Ten percent said they would sell to move somewhere with lower costs or be able to use their equity to move. For those who plan to use their home equity, 16% said they will use it to fund their retirement dreams, 12% will invest and 7% will remodel.
However, both Generation X and baby boomers understand how difficult it can be to enter the housing market. As single-family housing growth continues to drop, available housing inventory remains in-demand. Nearly 60% of respondents said they would offer advice and support to the next generation of buyers, while 38% plan to give them money for a home or give them their current home to sell. Thirty-six percent plan to pass down their home to the next generation and 12% plan to offer to let the next generation reside with them.
Ultimately, 41% of respondents said home is a place where they made memories, 38% said it is a safeguard against current market conditions and 35% said it provides financial stability, as opposed to rising rents.