Silver Tsunami Likely to Bring Wave of Wealth to Children of Baby Boomer Homeowners
Freddie Mac's latest analysis reveals that Baby Boomers hold $17 trillion (50%) of the nation's home equity, with 75% planning to leave their wealth to their children. The survey of respondents aged 60+ shows that 68% of Boomer homeowners are confident about a financially comfortable retirement, though this confidence has decreased from 76% in 2016 and 81% in 2021.
Key findings show that 68% of Boomers plan to age in place, while 66% of those planning to move intend to downsize. Of those considering alternative living arrangements, 68% would consider living in an ADU on their children's property. The study also found that half of Boomer homeowners own their homes outright, and 53% of those with mortgages have interest rates below 4%.
Recenti analisi di Freddie Mac rivelano che i Baby Boomer detengono $17 trilioni (50%) dell'equità abitativa della nazione, con il 75% che prevede di lasciare la propria ricchezza ai propri figli. Il sondaggio condotto su un campione di persone di età superiore ai 60 anni mostra che il 68% dei proprietari di casa Boomer è fiducioso riguardo a una pensione finanziariamente confortevole, sebbene questa fiducia sia diminuita dal 76% nel 2016 e dall'81% nel 2021.
I risultati chiave mostrano che il 68% dei Boomer prevede di invecchiare nella propria casa, mentre il 66% di coloro che pianificano di trasferirsi intendono ridurre la dimensione della loro abitazione. Tra quelli che considerano alloggi alternativi, il 68% prenderebbe in considerazione di vivere in un'unità abitativa accessoria (ADU) sulla proprietà dei propri figli. Lo studio ha anche rivelato che metà dei proprietari di casa Boomer possiede la casa in piena proprietà e il 53% di coloro che hanno un mutuo ha tassi d'interesse inferiori al 4%.
El último análisis de Freddie Mac revela que los Baby Boomers poseen $17 billones (50%) de la equidad en vivienda del país, con un 75% que planea dejar su riqueza a sus hijos. La encuesta de personas de 60 años o más muestra que el 68% de los propietarios de vivienda Boomers confían en tener una jubilación financieramente cómoda, aunque esta confianza ha disminuido del 76% en 2016 y del 81% en 2021.
Los hallazgos clave muestran que el 68% de los Boomers planea envejecer en su hogar, mientras que el 66% de aquellos que planean mudarse tiene la intención de reducir el tamaño de su vivienda. De aquellos que consideran arreglos de vivienda alternativos, el 68% consideraría vivir en una unidad accesoria (ADU) en la propiedad de sus hijos. El estudio también encontró que la mitad de los propietarios de vivienda Boomers poseen sus casas completamente, y el 53% de aquellos con hipotecas tienen tasas de interés por debajo del 4%.
프레디 맥의 최신 분석에 따르면, 베이비붐 세대는 국가 주택 자산의 50%인 17조 달러를 보유하고 있으며, 75%는 자신들의 재산을 자녀에게 물려줄 계획입니다. 60세 이상의 응답자를 대상으로 한 설문 조사에서 68%의 베이비붐 가정주택 소유자들이 경제적으로 편안한 은퇴에 대해 자신감을 느끼고 있지만, 이러한 자신감은 2016년의 76%와 2021년의 81%에서 감소했습니다.
주요 결과에 따르면, 68%의 베이비붐 세대는 자택에서 노후를 보내고 싶어하며, 이사할 계획인 사람들의 66%는 신축 주택으로 줄일 계획입니다. 대체 거주 옵션을 고려하는 이들 중 68%는 자녀의 재산에 있는 ADU에 거주하는 것을 고려할 것입니다. 또한, 연구에서는 베이비붐 세대 주택 소유자의 절반이 집을 완전히 소유하고 있으며, 모기지를 가진 사람들 중 53%는 이자율이 4% 미만이라는 결과를 발견했습니다.
La dernière analyse de Freddie Mac révèle que les Baby Boomers détiennent 17 billions de dollars (50%) de l'équité résidentielle de la nation, avec 75% prévoyant de transmettre leur richesse à leurs enfants. L'enquête menée auprès de répondants âgés de 60 ans et plus montre que 68% des propriétaires de maison Boomers sont confiants quant à une retraite financièrement confortable, bien que cette confiance ait diminué par rapport à 76% en 2016 et 81% en 2021.
Les résultats clés montrent que 68% des Boomers prévoient de vieillir chez eux, tandis que 66% de ceux qui envisagent de déménager ont l'intention de réduire la taille de leur logement. Parmi ceux qui envisagent des arrangements de vie alternatifs, 68% envisageraient de vivre dans une unité d'habitation accessoire (ADU) sur la propriété de leurs enfants. L'étude a également révélé que la moitié des propriétaires de maison Boomers possèdent leur maison en pleine propriété, et 53% de ceux ayant un prêt hypothécaire ont des taux d'intérêt inférieurs à 4%.
Die neuesten Analysen von Freddie Mac zeigen, dass die Baby-Boomer 17 Billionen Dollar (50%) des Eigenkapitals in Wohnimmobilien des Landes halten, wobei 75% planen, ihr Vermögen an ihre Kinder weiterzugeben. Die Umfrage unter Personen über 60 Jahre zeigt, dass 68% der Baby-Boomer-Hauseigentümer zuversichtlich sind, eine finanziell komfortable Rente zu haben, obwohl dieses Vertrauen von 76% im Jahr 2016 und 81% im Jahr 2021 gesunken ist.
Wichtige Erkenntnisse zeigen, dass 68% der Boomers planen, in ihrem eigenen Zuhause alt zu werden, während 66% derjenigen, die einen Umzug planen, beabsichtigen, ihre Wohnfläche zu verkleinern. Von denen, die alternative Wohnformen in Betracht ziehen, würden 68% in Betracht ziehen, in einer ADU auf dem Grundstück ihrer Kinder zu leben. Die Studie ergab auch, dass die Hälfte der Baby-Boomer-Hauseigentümer ihr Zuhause vollständig besitzt, und 53% derjenigen mit Hypotheken haben Zinssätze von unter 4%.
- Baby Boomers control $17.3 trillion in home equity
- 75% of Boomer homeowners plan to transfer wealth to their children
- 50% of Boomer homeowners own their homes outright
- 53% of mortgaged Boomers have interest rates below 4%
- Boomer household wealth increased by $486,000 per household since pandemic
- Retirement confidence among Boomer homeowners declined from 81% in 2021 to 68% in 2024
- Only 9% of Boomer homeowners plan to use home equity for retirement funding
New research indicates Boomers hold
MCLEAN, Va., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Three quarters of homeowners born before 1964 are likely to leave much of their
Freddie Mac’s new, comprehensive survey of respondents 60 or older also highlights that the majority of Boomers who own a home feel confident they will have a financially comfortable retirement. This is accompanied by a growing preference of some Boomers to downsize.
“As the youngest Baby Boomers turn 60 this year, this research provides an opportunity to learn from a generation that has weathered multiple economic cycles and pivotal moments in recent history, including the Great Financial Crisis and pandemic,” said Sonu Mittal, SVP and head of Single-Family Acquisitions at Freddie Mac. “The value we see placed on homeownership and its contribution to the long-term financial success of American families underscores the importance of our mission to make home possible for more families across the country.”
Freddie Mac has surveyed and tracked the attitudes of Baby Boomers for nearly a decade. As of 2024, there were 65 million Baby Boomers, accounting for
This latest research follows two prior surveys, the first in 2016 and again in 2021, in which Freddie Mac sought to track Boomers’ attitudes and perceptions in several key categories. Key findings include:
Perceptions of retirement.
68% of Boomer homeowners surveyed express confidence in having a comfortable retirement, regardless of race. This is down from 2016 (76% ) and 2021 (81% ).- Retired homeowners feel more confident than non-retired homeowners in believing they will have a comfortable retirement.
Aging in place remains preferable, but new trends have emerged.
- Aging in Place: As in 2016 (
66% ) and 2021 (69% ), Baby Boomer homeowners again feel confident they would remain in their current homes, with68% of respondents indicating they either plan to age in place or do not have plans to move again. - Downsizing: However, of Boomer homeowners looking to move at some point in the future,
66% indicate they also plan to downsize, with nearly 9 out of 10 respondents currently owning a residence with three or more bedrooms. Of the Boomer homeowners who moved in the last decade,36% say they downsized from their previous property. - Living Near Children: Of the
32% of Boomers who would consider living in a smaller, independent living area on someone else’s property, such as an accessory dwelling unit, the vast majority (68% ) of Boomer parents would consider living on their children’s property. - Men vs. Women:
40% of women expressed a willingness to move in with their adult children in the future, while only a quarter of men felt similarly.
Younger generations are positioned to receive trillions in home equity from Boomers with proper estate planning.
- According to Federal Reserve data, Baby Boomers hold
50% of the nation’s home equity, amounting to$17.3 trillion as of the second quarter of 2024. However, the torch is slowly being passed, with intentions to share the wealth with children and family members. - Regardless of race or gender,
75% of surveyed Boomer homeowners are planning to leave their current home or the proceeds from the sale of their home to their children or family members after they pass away.
Boomers will protect their home equity in retirement.
- Surveyed homeowners who currently have or used to have a fixed-rate mortgage overwhelmingly agree (
83% ) that it has allowed them to steadily build wealth over time. - To fund their retirements, Boomer homeowners believe they will tap sources other than their home equity, including savings, social security, retirement and investment accounts, and pensions. Only
9% of Boomer homeowners surveyed plan to use their home equity or a reverse mortgage to fund their retirement. - Half of Boomer homeowners surveyed already own their home outright and
53% of those still paying off a mortgage have an interest rate below4% .
“Clearly the Baby Boomer generation has benefited from our country’s unique housing finance system, and it is imperative that we ensure this system remains in place to help Boomers and the many generations that follow,” Mittal continued. “To that end, Freddie Mac has led on efforts to help homeowners access the equity in their home without affecting their interest rate, created offerings that help defray downpayment and closing costs, and enhanced our technology to help those with thin credit files qualify for a mortgage. With an eye toward the future, we also expanded our efforts to educate the public about homeownership and created resources to help owners appropriately plan for the transfer of wealth to their children and families.”
Freddie Mac’s flexible offerings and educational tools allow Boomers to renovate their home, generate rental income, estate plan and take other actions. Freddie Mac’s CHOICERenovation® and CHOICEReno eXPress® mortgages allow borrowers to save time and money by financing home improvements using a single loan that can better help them age in place when they purchase a home or renovate their existing home. This includes financing the conversion of space to an accessory dwelling unit, or ADU. Rental income generated on an ADU can also be used as qualifying income toward obtaining a mortgage, if certain requirements are met.
Additionally, Freddie Mac’s automated income assessment tool can assess income from tax return data for self-employed borrowers as well as bank account data to identify a history of positive monthly cash flow activity. This can include data from checking, savings and investment accounts, including those used for direct deposit of income and monthly bill payments, such as rent, utilities and auto loans. That data can help borrowers who may not qualify with traditional methods of underwriting.
For information on estate planning, wealth building and more, Freddie Mac’s consumer website, MyHome, offers a suite of articles and tools to aid Baby Boomers at this specific stage of their homeownership journey.
Methodology
The online survey, conducted April 27-May 3, 2024, included interviews with 3,003 homeowners and renters aged 60-78, with data weighted to be representative of a national sample of U.S. adults within the Baby Boomer generation.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
FOR IMMEDIATE RELEASE
MEDIA CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
FAQ
How much home equity do Baby Boomers control according to Freddie Mac (FMCC)?
What percentage of Baby Boomer homeowners plan to leave their homes to their children?
How has Baby Boomer retirement confidence changed since 2016 according to FMCC?
What percentage of Baby Boomers plan to age in place according to Freddie Mac's 2024 survey?
How many Baby Boomer homeowners have mortgage rates below 4%?
How much has Boomer household wealth increased since the pandemic?
