Even as Millennials enter the homebuying market, many Baby Boomers indicate they plan to stay in their homes throughout their retirements, according to a new study from PropertyShark.
The study showed that almost a third of adults over the age of 45 say they struggle with the cost of housing and a third also say they don’t plan on ever fully retiring.
Beyond that, the study showed that more than half of Baby Boomers (56% to be exact) said they want to age in place and stay in the home they're in now.
A situation like that could have negative impact on the housing availability for younger buyers, with fewer homes coming on the market, but a positive impact on the reverse mortgage market as many older homeowners are already indicating that they are struggling with housing costs now.
Of those with a yearly income of $20,000 to $40,000, 42% said they struggle with housing costs. And as recent data from CoreLogic showed, home prices are also expected to increase 4.7% between April 2019 and April 2020, faster than the 3.6% gain last year.
There's also a knowledge gap for Baby Boomers and their future housing options. According to the survey, half of the people surveyed said they lacked knowledge of government programs in relation to senior housing.
What's the main concern for housing after retirement? Keeping up with maintenance and repairs, and cost of rising property taxes. Over half of respondents said they have less than $100,000 saved for retirement, and only 4% said they have more than $1 million saved.
Another option for older homeowners? Living like the Golden Girls. Yes, really.
A third of the survey said they wouldn’t mind cohabiting. While more than half said they would rather not have someone move in with them, 41% said they'd be willing to live with someone if they’re vetted, help around the house and pay rent.
PropertyShark surveyed 1,068 people ages 45 and older.