Will a Silver Tsunami Change the 2024 KC Housing Market?
The term "Silver Tsunami" has been thrown around a lot online recently. What does this term mean for Kansas City buyers and sellers? Will it drastically impact the Kansas City housing market? The Just Say Home real estate experts explain why they believe this trend won't create a significant change in the days ahead.
What Does "Silver Tsunami" Mean?
As a recent article from HousingWire puts it, a "Silver Tsunami" is:
". . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . ."
The idea is that as baby boomers age, many will start downsizing their homes. Due to the increased population of this generation, a big wave of these moves would affect the Kansas City housing market by causing a significant increase in the supply of larger homes for sale. The influx of homes coming onto the market would influence the balance of supply and demand.
This concept makes sense in theory. However, many Kansas City buyers and sellers are asking: Will it happen this year? And if so, when?
Why It Won't Have a Huge Impact on the Housing Market in 2024
According to housing market experts, a silver tsunami hasn't happened yet – and likely won't occur anytime soon. According to HousingWire:
". . . 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."
The simple reason why? Many baby boomers don't want to move. Recent data from the AARP reveals that over half of surveyed adults ages 65 and up intend to stay put and age in place in their current home rather than move (see chart below):
Not every baby boomer plans to sell or move, and those who do won't move all at once. Any upcoming moves in this generation will be more gradual, happening slowly over time rather than as a sudden wave. As Mark Fleming, Chief Economist at First American, says:
"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."
Are you worried about a Silver Tsunami shaking up the Kansas City housing market? There's no need for concern. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best: "Demographic trends, they don't tsunami. They trickle." Want to learn more about this and many other housing market trends? The Just Say Home KC real estate agents can give a clear insight into current data to provide confidence for your next move.