Baby Boomer-Dominant Housing Markets

Homeownership has long been considered part of the American dream. But first-time home buyers, especially millennials and Gen Xers, are facing an uphill battle when it comes to house hunting. This is in part because of a growing trend in which baby boomers, the generation that owns the largest share of American homes, are planning to stay put. In fact, a 2018 survey conducted by AARP found that 76 percent of Americans over the age of 50 would prefer to remain in their current home—rather than move in with family, to a nursing home, or to an assisted living facility—which is leading to less inventory for new buyers.

According to the U.S. Census Bureau, the share of homeowners over the age of 55 has been steadily increasing. In 2008, at the onset of the Great Recession, Americans over the age of 55 owned 44.3 percent of homes. By 2019, that percentage had increased to 53.8 percent. While the share of homeowners under the age of 35 remained fairly steady within the same time span, the share of homeowners between the ages of 35 and 54 decreased from 42.3 percent to 34.1 percent.

Chart1 Baby boomers own a majority of U.S. homes

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With more Americans choosing to “age in place,” older homeowners are upgrading their homes in ways that make it easier to do so. Popular upgrades include installing stairlifts, ramps, handrails, walk-in tubs, and replacement windows that are easier to operate.

While baby boomers—defined here as Americans between the ages of 55 and 74—comprise just over 22 percent of the U.S. population, they account for nearly 42 percent of homeowners nationwide. Notably, baby boomers dominate the housing market in many coastal states, such as Maine (45.3 percent), Delaware (45.2 percent), New Hampshire (44.9 percent), Florida (44.6 percent), and Rhode Island (44.3 percent). By contrast, Midwestern states are more likely to have fewer baby boomer homeowners, including Minnesota (39.5 percent), Iowa (39.4 percent), Nebraska (38.7 percent), and North Dakota (38.5 percent). Across all states, baby boomers in Utah account for the lowest share of homeowners at just 34.0 percent.

Chart2 Baby boomers dominate the housing market in coastal states

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To find which cities have the highest share of baby boomer homeowners, researchers at Construction Coverage, a review website for construction project management software and builders insurance, analyzed homeownership and demographic data from the U.S. Census Bureau. Researchers also referenced the Zillow Home Value Index to find each city’s median home price, compared to the national median of $256,663. They ranked the cities by the share of owner-occupied housing units owned by baby boomers.

To improve relevance, the cities were also categorized into three groups by population: small (100,000–149,999), midsize (150,000–349,999), and large (350,000 or more). Here are the cities with the most baby boomer-owned homes.