The Silver Tsunami: The New-Money Wave

The U.S. housing market is defined by one dominant force: the 70 million-strong baby boomer generation. They are now the largest group of both home buyers and sellers, controlling supply and demand.

Boomers own up to $19 trillion in real estate—nearly half the entire U.S. market. But this dominance creates a great contradiction.

While some migrate to lifestyle havens like Florida, the vast majority are not moving. They are "aging in place." This has created a "housing traffic jam." Empty-nester boomers own 28% of the nation's large, three-bedroom-plus homes... nearly double the 14% share held by millennial's with children.

Why stay? They're locked in by the "golden handcuffs" of rock-bottom mortgage rates. Selling and buying again, even a smaller home, would often mean a higher monthly payment.

While this freezes today's inventory, change is inevitable. The coming "Silver Tsunami" and the "Great Wealth Transfer"—estimated at over $70 trillion—will eventually release this housing stock, reshaping the market for decades to come.

Jim McDonald - Senior Realtor in Central Florida [phone] or email: [e-mail]