Have you come across the term "Silver Tsunami" being mentioned lately? Well, let me break it down for you. This term is all about the prediction that many baby boomers will be relocating or downsizing simultaneously. The concern is that this sudden surge of homes hitting the market could greatly affect the real estate landscape. With the influx of properties up for sale, there would be increased competition for smaller homes, disrupting the

Absolutely, let's talk about this for a moment. Here's the deal - there are a few issues in that reasoning. Let's dig into them and help you understand better.

Not All Baby Boomers Plan To Move

For starters, a good number of baby boomers actually have no intention of moving. According to a study by the AARP, over 50% of individuals aged 65 and above prefer to remain in their current homes as they get older.

While it's accurate that situations can shift and some individuals who currently have no intentions of moving (represented by the red portion of the chart) might eventually decide to relocate, most are actually banking on staying put as they grow older.

According to an article from Inman, many people choose to adapt their current homes as their lifestyle evolves. In situations where renovating isn't feasible, some opt to purchase a second property while holding onto their first as an investment for future generations.

““Many boomers have no desire to retire fully and take up less space . . . Many will modify their current home, and the wealthiest will opt to have multiple homes.”
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— Inman

Even Those Who Do Move Won’t Do It All at Once

While not every baby boomer is eager to sell their home and relocate, those who are considering it won't all be doing so simultaneously. The process will unfold gradually over the course of several years, as noted by Freddie Mac.

““We forecast the ‘tsunami’ will be more like a tide, bringing a gradual exit of 9.2 million Boomers by 2035 . . .”
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— Freddie Mac

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.”
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— Mark Fleming, Chief Economist at First American

Bottom Line

No need to worry about the housing market being suddenly rocked by the Silver Tsunami! Baby boomers are expected to transition gradually over an extended period, so take a deep breath and relax.