Silver Tsunami to Bring a Wave of Wealth to Children of Baby Boomer Homeowners

(12/20/24)  If your folks are members of the Baby Boom generation, born between 1946 and 1964, it might be wise to consult a wealth advisor and estate planner right away. After all, according to Freddie Mac, three quarters of homeowners born before 1964 are expected to leave much of their $17 trillion in home equity to their children.

According to data from the Federal Reserve, Baby Boomers hold 50% of the nation’s home equity – some $17.3 trillion as of the second quarter of 2024. With 75% of those surveyed saying they were planning to leave their current home, or the proceeds from its sale, to their children or family members after they pass away, a huge inter-generational wealth transfer is poised to happen.

This data comes from a survey conducted by Freddie Mac of 3,003 homeowners and renters aged 60 through 78 between April 27 and May 3, 2024. Here are some of the additional findings:

·      68% of Boomer homeowners surveyed expressed confidence in having a comfortable retirement – down from 81% in 2021.

·      Aging in place is preferred by Baby Boomer homeowners, with 68% saying they either plan to age in their current home or do not have plans to move again.

·      40% of women said they would be willing to move in with their adult children, but only a quarter of men felt the same way.

“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, a senior vice president and head of Single-Family Acquisitions at Freddie Mac. “Clearly, the Baby Boomer generation has benefited from our country’s unique housing finance system.”