If you have been reading many of the real estate 2020 forecasts being released, you have no doubt seen or heard about the term ‘Silver Tsunami’. This week, we wanted to share some data from MarketWatch which depicts what this trend is and what it may mean in the years to come.
Silver Tsunami Stats
| Approximately 1 in 3 homes in the US is owned by someone aged 60 or older.
| Between 2007 and 2017, around 730,000 homes hit the market which were previously owned by seniors.
| Between 2017 and 2027, Zillow estimates that 920,000 homes will be released into the market by people aged 60 and older.
| Between 2027 and 2037, the estimate of homes released into the market by seniors is projected at 1.17 million.
| The ‘Silver Tsunami’ of homes entering the market will NOT happen all at once and will NOT impact all markets equally.
| The markets expected to see the biggest impact are the metro areas of: Tampa-St. Petersburg-Clearwater (FL), Tuscon (AZ), Miami-Ft. Lauderdale-Port Saint Lucie (FL) and Orlando (FL) – with a release of homes ranging from 31-33% of the market.
| Metro areas within Tennessee, New Mexico, North Carolina, Ohio, New York and Connecticut also dominated the list of markets that will see an influx of homes as a result of seniors downsizing or passing away.
| Markets expected to see the smallest effect of the Silver Tsunami are Salt Lake City, Austin, Houston and Dallas.
| The majority of the cities that will see the most homes available are also proven to be less popular for Millennials and Generation X-ers.
So, what does all of this mean for you?! First of all, always consider your local micro market trends when considering the timing of selling your home and the competition you may face. The other key take-a-way is that where the jobs are and where younger generations are working and starting families seems to be the larger, driving force of inventory shortages. In short, the Silicon Valley housing shortage is unlikely to be resolved by a nationwide Silver Tsunami.
As an agent, my priority in serving older adults is not to pressure them into selling based on when and what other seniors are doing – but to help them weigh the factors that impact their lifestyle, their proximity to loved ones and the costs of aging in Silicon Valley.
All my best,
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS,
REI, AHWD, RSPS, MSLG
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/