$18 Trillion in Home Equity: Boomers or Bust?

Baby boomers with home equity have more than $18 trillion in home equity, which is more than triple the amount owned by millennials. Thats a big number for sure. What are they doing with all that money? Are they unknowingly siting on a gold mine or doing something with that equity? The answer is the focus of some Revaluate clients, who refine lists to focus on Boomers – as they are in need and more flexible to move when the time is right for them.

There has been a noticeable trend in recent years of baby boomers downsizing their homes, opting for smaller and more manageable living spaces.

Look Who’s Moving

Empty Nesters: Many baby boomers are becoming empty nesters as their children grow up and move out of the house. With no need for extra bedrooms or large living spaces, they often choose to downsize to a smaller home that better suits their current lifestyle.

Lifestyle Preferences: As baby boomers retire or approach retirement age, they may seek to simplify their lives and reduce maintenance responsibilities. Smaller homes typically require less upkeep, both indoors and outdoors, allowing them more time and freedom to pursue leisure activities and travel.

Financial Considerations: Downsizing can also offer financial benefits for baby boomers. Smaller homes generally come with lower mortgage payments, property taxes, maintenance costs, insurance costs, and utility bills. Additionally, selling a larger home may provide them with additional funds for retirement or other financial goals.

While downsizing is a growing trend among baby boomers, not all within this demographic group are making the same housing choices. Some may choose to stay in their current homes, especially if they have strong emotional ties or if their current homes already meet their needs for size and functionality.

As baby boomers age, they may prioritize homes that are more accessible and easier to navigate, with fewer steps. Single-story layouts, wider doorways, and grab bars in bathrooms are attractive to the elderly. Downsizing to a smaller home can facilitate “aging in place” by reducing the risk of falls and making daily activities more manageable. But the pressure and desire to move may increase over time for many.

Show Me The Money

Baby boomers with home equity typically have a significant portion of their wealth tied up in both home equity and investments. Let’s break down each:

Home Equity: Baby boomers, especially those who have owned their homes for many years, often have substantial equity built up in their properties. CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of over $3.6 trillion since the second quarter of 2021, a gain of 27.8% year over year.
With 69 million Baby boomer home owners holding $18 Trillion in equity, the average is $260k in Baby Boomer equity.

Investments: Baby boomers also typically hold investments in various forms, including retirement accounts (such as 401(k) plans and IRAs), stocks, bonds, mutual funds, real estate investment trusts (REITs), and other assets. This is estimated by nasdaq to be $60 Trillion in investments.

How to Find Boomer Home Sellers

Leverage your Revaluate account AI to sort for likely movers that are boomers with home equity. But we can also build you a list based on a farm (geo farm) that is focused on home owners that are Boomers. This will let you target those people that are most likely to move, with a desire to move, with the equity and investments to move despite high interest rates. Talk to our Data nerds by scheduling a call and read more about Revaluate Lead Gen geo farming here.

Young Generational Fact

The actual generational kings of housing? Millennials. Boomers don’t own most of the homes. Millennials make up the biggest piece of the home buying pie having purchased about 60% of homes bought with mortgages during the past several years. Here’s looking at you, kid.