Will Baby Boomers sell their houses? Effects on Multifamily
A survey of over 1500 American homeowners aged 60-75 from American Advisors Group says that 82% of survey respondents said they would prefer to live out their remaining years in their current home if they can.
How does that impact the Worcester multifamily housing market?
First, we would need to know how many of these properties are owned by people living in them. I would say that the number is slim.
However, this does impact multifamily if buyers who would prefer to live in single-family homes are pushed into the 2 and 3 family market. Additionally, they may be forced to stay renters longer than they had expected.
Impact on Housing Market
This lack of single-family inventory turnover should force increases in prices of "owner-occupied" 2 and 3 family homes in predominantly single-family neighborhoods like the West Side and Burncoat/Greendale. If these Baby Boomers stay in their SF homes or even in their 2 family homes, it will:
Restrict supply
Increase demand
Drive up prices
It will also drive up rental prices in these same neighborhoods where people want to live.
Broader Market Implications
It may have an impact in the larger multifamily market, but that would simply be due to a lack of rental units (less people moving to Florida to retire) and more people continuing to live in Worcester.
This makes it a good time to invest in multifamily housing as this survey logically means that rents will increase.
Comments