Understanding the Changing Landscape of Senior Homebuyers and the Rise of Multigenerational Housing
Adapted from an article by Melissa Dittmann Tracey on REALTOR® Magazine (NAR.com), July 19, 2024

Quick Takeaways:

  • Baby boomers are currently the largest group of home sellers, with unique housing needs compared to earlier generations.

  • Working with older adults requires awareness of their priorities, possible family involvement, and accessibility considerations.

  • Reverse mortgages may offer financial relief for some seniors, but require careful evaluation of risks and benefits.

  • Generation X is facing a looming retirement crisis, increasing the likelihood of multigenerational housing arrangements.


The Silver Generation Shifting Real Estate Trends

According to the National Association of REALTORS® (NAR), senior households are growing faster than any other age group, with baby boomers (born 1946–1964) making up the largest share of home sellers in 2023. Unlike prior generations, today’s seniors are more diverse in their living preferences—some are downsizing or renting in active adult communities, others are exploring co-housing options, while many are buying homes similar to those they already own. Notably, fewer are choosing to move into assisted living facilities.

Real estate professionals working with seniors need to be sensitive to mobility or accessibility concerns and be prepared to coordinate with family members during the home buying or selling process. Popular retirement destinations continue to attract buyers, but newer locations are emerging as preferred hubs for older adults.


Financing Later Life: The Role of Reverse Mortgages

For some seniors, reverse mortgages may offer an appealing solution—allowing them to tap into their home equity while continuing to live in the property. However, understanding the mechanics, benefits, and risks of reverse mortgages is crucial. While safeguards have improved to protect borrowers from foreclosure, not every senior is a good candidate.

NAR encourages clients and their agents to utilize available resources, such as cost calculators, community comparisons, and financial aid directories, to make informed decisions. REALTORS® with the Seniors Real Estate Specialist® (SRES®) designation are trained to address the unique needs of older home buyers and sellers.


Generation X: The Next Housing Challenge

In an eye-opening report from Prudential Financial Inc., Gen X (currently in their 40s and 50s) is facing what’s been dubbed a “midlife retirement crisis.” The 2024 Pulse of the American Retiree Survey reveals that Americans aged 55 have a median retirement savings of less than $50,000—and two-thirds fear outliving their savings. This could signal a rise in “silver squatters,” middle-aged adults who will depend on their adult children for housing in retirement.

Jessica Lautz, NAR’s Deputy Chief Economist, notes that Gen Xers were heavily impacted by the 2008 financial crisis and many are now rebounding. Interestingly, they are the most likely generation to buy multigenerational homes—almost 20% of Gen X buyers are doing so. This is largely due to their role as the “sandwich generation,” simultaneously supporting aging parents and adult children.


Multigenerational Living: A Growing Reality

Affordability remains a challenge across all generations, but multigenerational living is providing some financial reprieve. According to a realtor.com® study, about a third of sandwich generation members say caregiving responsibilities have kept them from buying a home or paying off a mortgage. Still, for others, family support has improved their financial situation: over 50% say it has helped them afford a home, and 47% report it’s helped them save for retirement.

Laura Eddy, vice president of research and insight at realtor.com®, highlights the dual nature of this trend: “Family support is proving essential—not just for caregiving but also for achieving housing goals.”


Looking Ahead

While baby boomers are the current focus—with around 11,000 people turning 65 each day—the industry must also prepare for the growing needs of Gen Xers, many of whom are entering their critical decade before retirement. As Caroline Feeney, CEO of Prudential’s U.S. Businesses, emphasizes: “With strategic planning, this generation can be well-equipped not just to live longer, but to live better.”


Sources:

  • Tracey, Melissa Dittmann. “The Next Real Estate Trend: ‘Silver Squatters’?” REALTOR® Magazine, National Association of REALTORS®, July 19, 2024. www.nar.realtor

  • Prudential Financial Inc., 2024 Pulse of the American Retiree Survey

  • realtor.com® Insights & Surveys