Boomers Own Half of U.S. Wealth. So Why Are We Seeing More Homeless Boomers? | WSJ
The Wall Street Journal・2 minutes read
Baby boomers, particularly those born between 1946 and 1954, hold around half of US wealth, primarily in real estate, with older boomers contributing to the housing shortage by choosing to age in place. Younger boomers are struggling with homelessness, adding to the rise of elderly homelessness, impacting millennials due to factors like high housing costs and lack of retirement income.
Insights
- Older boomers, mainly in their 70s, are significant homeowners owning a substantial portion of large homes in the US, causing housing shortages by opting to remain in their houses due to paid-off mortgages and tax incentives.
- Younger boomers are increasingly facing homelessness issues, with a notable percentage of the adult homeless population aged 55 and over, often a result of significant life events, high housing costs, or insufficient retirement income.
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Recent questions
Why do older boomers hold a significant portion of US wealth?
Older boomers, born between 1946 and 1954, hold about half of US wealth primarily in real estate because they are mostly homeowners who have paid off their mortgages. They own over 35% of large homes in the US and contribute to the housing shortage by choosing to age in place, thus accumulating wealth in the form of property.
What is causing the housing shortage in California?
The housing shortage in California is exacerbated by homeowners, particularly older boomers, who tend to stay in their homes the longest due to tax incentives. This leads to a limited housing supply, driving up home prices and impacting millennials who struggle to afford housing in the state.
How are younger boomers contributing to the rise in elderly homelessness?
Younger boomers are contributing to the rise in elderly homelessness as close to 30% of the adult homeless population is 55 and over. Factors such as major life events, high housing costs, and lack of social security income in retirement are pushing younger boomers into homelessness, highlighting the struggles faced by this demographic.
Are boomers downsizing their homes to alleviate the housing shortage?
While some boomers are selling their large homes, around 20%, they are not downsizing. This lack of downsizing leads to a limited impact on the housing shortage as builders focus on constructing larger, more expensive homes, rather than addressing the need for more affordable housing options.
How are older boomers impacting the housing market by choosing to age in place?
Older boomers, now mostly in their 70s, are impacting the housing market by choosing to age in place. Around 80% of older boomers are homeowners who have paid off their mortgages, owning over 35% of large homes in the US. This trend contributes to the housing shortage and rising home prices, particularly in states like California, where homeowners tend to stay in their homes longer due to tax incentives.
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Summary
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Boomers' Wealth and Housing Impact in US
- Boomers, particularly those born between 1946 and 1954, hold about half of US wealth, primarily in real estate, while younger boomers are facing increasing struggles with homelessness.
- Around 80% of older boomers, now mostly in their 70s, are homeowners who have paid off their mortgages and own over 35% of large homes in the US, contributing to the housing shortage by choosing to age in place.
- California homeowners tend to stay in their homes the longest due to tax incentives, exacerbating the housing shortage and rising home prices, especially impacting millennials.
- While some boomers are selling their large homes, around 20%, they are not downsizing, leading to a limited impact on the housing shortage as builders focus on larger, more expensive homes.
- Younger boomers are contributing to the rise in elderly homelessness, with close to 30% of the adult homeless population being 55 and over, often due to major life events, high housing costs, or lack of social security income in retirement.
