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Baby boomers hold the majority of real estate wealth in the U.S.—and as they age, they increasingly say they plan to stay put in their current homes. Sixty-six percent of U.S. adults aged 55 and older say they expect to age in place, according to a new Freddie Mac survey.
But that could further exacerbate the housing supply shortage, the report notes. The housing supply in the U.S. has dropped to record lows over the past two years. Baby boomers are veering from traditional patterns of selling later in life and downsizing or moving to assisted living. That could prompt an even more severe housing shortage nationwide.
Baby boomers’ financial gains over the past five years may better equip them to stay in place, too, the survey says.
Still, baby boomers acknowledge that their home will require some degree of renovations to make the space more appropriate to age in place. But they feel confident that their personal savings and long-term retirement and investment accounts will allow them to afford to do so, the survey shows.
A 2021 survey conducted by AARP shows that many homeowners would need to modify their current home so they or a loved one could live there.
· 79% say they would need to modify bathrooms with grab bars or no-step showers.
· 71% say their home has inside and outside accessibility issues.
· 61% say they would need an emergency response system.
· 48% say they would need smart-home devices like a voice-activated home assistant or a doorbell camera.
The number of households headed by people aged 65 and older is expected to increase from 34 million to 48 million over the next two decades, according to Urban Institute data.