Will a Silver Tsunami Change the 2024 Housing Market?

Have you ever heard the term “Silver Tsunami” and questioned what it’s everything about? That may be since there’s been lot of talk about it online just recently if so. Let’s dive into what it is and why it won’t drastically impact the real estate market.

What Does Silver Tsunami Mean?

A current article from HousingWire calls it:

“… a colloquialism referring to aging Americans changing their housing plans to accommodate aging…”

The thought is that as baby boomers get older, a considerable number will begin scaling down their homes. Thinking about how big that generation is, if these relocations happened in a huge wave, it would affect the housing market by causing a substantial uptick in the variety of bigger homes for sale. That increase of homes coming onto the market would affect the balance of supply and demand and more.

The concept makes sense in theory, however will it happen? And if so, when?

Why It Won’t Have a Huge Impact on the Housing Market in 2024

Professionals say, up until now, a silver tsunami hasn’t happened– and it most likely won’t anytime soon. According to that same short article from HousingWire:

“… the silver tsunami’s transformative capacity for the U.S. real estate market has not yet materialized in any meaningful way, and couple of anticipate it to anytime quickly.”

Here’s just one reason. Lots of child boomers don’t wish to move. Information from the AARP programs over half of the surveyed grownups ages 65 and up strategy to sit tight and age in place in their present home rather than move (see chart listed below):

Clearly, not every infant boomer is planning to move or offer– and even those who do will not do it at one time. Instead, it will be more gradual, occurring gradually gradually. As Mark Fleming, Chief Economist at First American, states:

“Demographics are never ever a tsunami. The infant boomer generation is almost twenty years of births. That means they’re going to take about twenty years to work their way through.”

Bottom Line

Do not be if you’re fretted about a Silver Tsunami shaking up the real estate market. Any impact from infant boomers moving will be progressive over several years. Fleming sums it up best:

”

Demographic trends, they do not tsunami. They trickle.”

“Silver Tsunami” and questioned what it’s all about? Thinking about how big that generation is, if these relocations happened in a huge wave, it would affect the housing market by causing a substantial uptick in the number of bigger homes for sale. Professionals say, so far, a silver tsunami hasn’t occurred– and it probably won’t anytime soon. If you’re fretted about a Silver Tsunami shaking up the housing market, do not be. Any impact from child boomers moving will be steady over numerous years.