Have you Heard of the Silver Tsunami??

Have you heard about the Silver Tsunami? The term “Silver Tsunami” has been circulating, suggesting that many baby boomers will soon move or downsize, potentially impacting the housing market. This concern arises from the idea that increased competition for smaller homes could disrupt the balance of supply and demand, affecting home prices.

However, there are nuances to consider. Many baby boomers prefer to age in place, with 60% of adults aged 65 and older expressing this desire, according to an AARP study. For those who do move, they often choose to modify their existing homes to suit their needs or invest in a second property, maintaining their original home as a source of generational wealth.

Additionally, not all baby boomers will move simultaneously. The transition is expected to occur gradually over many years, with approximately 9.2 million boomers projected to exit the housing market by 2035, as per Freddie Mac. Mark Fleming, Chief Economist at First American, emphasizes that the impact of the baby boomer generation on the housing market will unfold over a considerable period due to the span of almost two decades of births within this demographic.

In light of these factors, it is unlikely that baby boomers will provide an immediate solution to the inventory shortages in the local Atlanta market and beyond .