Housing inventory has been tight for a decade, mainly because builders have faced rising costs for labor and materials. However, about a third of America’s homes are currently owned by people aged 60 or older. More than 20 million homes will hit the market over the next 20 years, the coming silver tsunami, as aging baby boomers die or vacate their houses.
The Coming Silver Tsunami
Between 2007 and 2017, about 730,000 homes were released into the US market by people aged 60 and older, according to Zillow. Between 2017 and 2027, that number is expected to spike to 920,000 per year. Between 2027 and 2037, it’s supposed to rise to 1.17 million per year. This means more than 27% of today’s owner-occupied homes will become available by 2037.
In the Virgnia Beach-Norfolk area the estimated share of currently owner-occupied homes to be released to the market by seniors (60+) is thought to be 11.4% by 2027 and 26.4% by 2037.
Can a Real Estate Investor Benefit from the Coming Silver Tsunami?
Taimur Hyat and his Prudential Financial Investment Management colleagues have published a fascinating report on the subject, A Silver Lining: The Investment Implications of an Aging World, based on interviews with PGIM investment pros; new proprietary research on consumer spending and meetings with industry experts in tech, life, and actuarial sciences, venture capital, and demography. Its conclusion: “Investors should consider capitalizing on the opportunities arising from this unprecedented global demographic shift.” That means Multifamily condos, senior housing, urban life sciences clusters, pharmaceuticals, and biotech and technology-enabled medical services and devices.
How the Coming Silver Tsunami Impacts Senior Living
The coming silver tsunami will have considerable impact, as well as the increase in America’s aging population on senior living. Not only will the demand for senior living increase, but the style and manner in which senior living and senior care are delivered will change. Baby boomers have already started revolutionizing senior living and their expectations will continue to change what it means to age.
The Silver Living Blog Expects Increased Demand
- You will see senior living communities popping up all over the country – not just in typical retirement states like Florida and Arizona. As the demand for senior living increases, senior communities will rise in rural and urban settings alike.
- You will see more senior living options, but they will look a little different. They want accessibility and convenience partnered with unmatched care and amenities. The future of senior living is not institutional. It’s vibrant and active, encouraging and empowering – reflecting a generation that has changed their nation.
- You will see a rise in the standard of senior living. Expect to see more options and personalized care; concierge services to transportation and even customized care offerings.
Ask now for our FREE information about How to Sell Your House Fast.
I am Christian Dunlap, and my company, ChristianBuysHouses.com, buys houses all across Hampton Roads, including Virginia Beach, Norfolk, Chesapeake, and Portsmouth.
Give me a call today at 757-705-8812, and I will do my best to provide you with the fastest and fairest home selling solution you need.
Photo by Zach Ahmajani on Unsplash
