Have you ever heard the term “Silver Tsunami” and wondered what it’s all about? If so, that might be because there’s been lot of talk about it online recently. Let’s dive into what it is and why it won’t drastically impact the housing market.
What Does Silver Tsunami Mean?
A recent article from HousingWire calls it:
“. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .”
The thought is that as baby boomers grow older, a significant number will start downsizing their homes. Considering how large that generation is, if these moves happened in a big wave, it would affect the housing market by causing a significant uptick in the number of larger homes for sale. That influx of homes coming onto the market would impact the balance of supply and demand and more.
The concept makes sense in theory, but will it happen? And if so, when?
Why It Won’t Have a Huge Impact on the Housing Market in 2024
Experts say, so far, a silver tsunami hasn’t happened – and it probably won’t anytime soon. According to that same article from HousingWire:
“. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.”
Here’s just one reason why. Many baby boomers don’t want to move. Data from the AARP shows over half of the surveyed adults ages 65 and up plan to stay put and age in place in their current home rather than move (see chart below):
Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First American, says:
“Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”
If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best:
“Demographic trends, they don’t tsunami. They trickle.”
We are Jamie and Sandi Ehresman, happily married and happily teamed up to rock this thing called Real Estate in our little neck of the woods (Central Texas, that is 😊).
When we’re not working, we’re hanging out in downtown Bastrop with friends, enjoying local food and music, dancing around our kitchen while making dinner, kayaking down our local piece of the Lower Colorado River, starting a new home project, traveling to far-off places with family…you get the idea!
Part of what makes both our marriage and our business work so well is that we complement each other perfectly. Together, we are able to attend to every detail, jump every hurdle, solve every problem, and go the extra mile to ensure an extraordinary experience for you and yours.
But beyond that, we are interested in the relationships we are building even more than the transactions we are working, as important as those are. We want you to call us, to work with us, to build a lasting relationship with us. We MEAN it. We are here for you.