The media has been running stories saying the housing market is broken because older “baby boomers” are not selling their homes, downsizing and moving into retirement communities and retirement apartments: A clog in the housing pipeline: Baby boomers don’t want to move out
This thesis, though, does not make sense.
- The availability of retirement communities and apartments is a relative new phenomenon. It has been normal to age in place or live with extended family. Only in recent decades has there been a growth of the retirement housing market. This is very new.
- Selling and moving means exchanging one home unit for another home unit. It does not make more homes available!
I asked an AI to summarize the issue, and I agree with it’s analysis. The AI text has been edited by me and supplemented with additional information.
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Older adults moving out of homes doesn’t eliminate housing demand—it simply shifts it. The narrative that baby boomers are “clogging” the housing market oversimplifies a much more complex set of structural issues.
🧠 Why the “Boomer Bottleneck” Narrative Persists
Several recent reports suggest that baby boomers are contributing to the housing shortage by “aging in place” rather than downsizing or relocating to senior housing. According to Redfin, 78% of boomers plan to stay in their current homes for retirement, which limits turnover in the housing market. But this trend is not new—it reflects longstanding cultural norms and economic realities.
Historically, older adults often remained in their homes or moved in with family. The rise of retirement communities and senior apartments is a relatively recent development, driven by demographic shifts, longer lifespans, and changing family structures. However, the infrastructure to support this shift is lagging:
- Senior housing supply is falling short of demand, especially as the oldest boomers approach their 80s.
- Many boomers cannot find affordable, accessible alternatives nearby, making downsizing impractical.
- The housing market favors luxury development over middle-income or age-friendly housing, further limiting options.
🏠 The Real Constraints Behind the Housing Shortage
Rather than blaming boomers, experts point to broader systemic issues:
- Zoning laws and land use restrictions limit the construction of multi-family and affordable housing.
- Underbuilding since the 2008 financial crisis has left a persistent supply gap.
- Investor ownership and short-term rentals reduce available housing stock for families.
- Mismatch in housing types: Many regions have an oversupply of large single-family homes and a shortage of smaller, accessible units.
For decades, the U.S. housing market has supersized homes – and a long with that, much higher prices for homes. Today, just 8% of new homes are marketed as “starter homes”.
🔄 The Myth of “Freeing Up” Homes
Even if boomers did move en masse, they’d still need housing—often in the same communities. Without sufficient senior housing, downsizing simply shifts demand, not resolves it. And many boomers are not just staying put—they’re actively supporting younger generations by offering intergenerational housing or financial help.
🧭 What Might Help
- Building more diverse housing types, including accessible apartments, co-housing, and intergenerational units.
- Reforming zoning laws to allow for duplexes, ADUs, and mixed-use developments.
- Investing in senior housing infrastructure to meet the coming wave of demand.
Unfortunately, the media has piled onto this meme – and continues to use Generation Labels as a way of pitting one generation against another, largely creating emotional click bait stories. The Generation labels were invented by the Pew Research Center – and today, they are de-emphasizing the use of those labels due to their widespread misuse.
