Hey, have you ever come across the phrase "Silver Tsunami" and wondered what the buzz is all about? It seems like there's been a lot of chatter about it online lately. Let's take a closer look at what it actually means and why it's not expected to have a huge impact on the housing market.

What Does Silver Tsunami Mean?

A recent article from HousingWire mentions

““. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .””

— HousingWire

It's like this: as the baby boomer generation gets older, a lot of them are looking to downsize their homes. And since there are a ton of baby boomers, if they all start moving to smaller places around the same time, it's gonna flood the housing market with larger homes for sale. This surge of homes hitting the market could shake things up by changing the balance between how many homes are available and how many people are looking to buy.

The idea sounds good on paper, but do you think it will actually come to fruition? And if it does, when do you think it might happen?

Why It Won’t Have a Huge Impact on the Housing Market in 2024

According to experts, the anticipated surge in older adults impacting the housing market, often referred to as the "silver tsunami," has not materialized yet and is unlikely to happen in the near future. As stated in the mentioned HousingWire piece:

““. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.””

— HousingWire

It’s like this, a lot of baby boomers aren't too keen on moving. The AARP’s data reveals that more than half of folks aged 65 and up prefer to stay where they are and grow old in their current homes instead of relocating.

Not every baby boomer is thinking about selling or moving, and even for those who are, it won't all happen at once. It will be more of a gradual process, happening slowly over time, as Mark Fleming, Chief Economist at First American, points out.

““Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.””

— Mark Fleming, Chief Economist at First American

Bottom Line

Don't sweat it if you're concerned about the housing market getting rattled by the Silver Tsunami. The effects of baby boomers making moves will happen slowly over a long period of time. Fleming puts it simply.