9 Housing Markets Boomers Won’t Be Able To Afford in Less Than a Decade
Written by
Jennifer Taylor
Edited by
Rebekah Evans
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Many baby boomers have been settled into their homes for decades. As of 2022, baby boomers make up 21% of the U.S. population and 38% of total homeowner households, according to Freddie Mac. When households age beyond 75, this number gradually starts to decline.
However, in 10 years the youngest boomers will only be 71 years old. Because of this, those looking to make a move and take on a mortgage might be priced out in certain areas. Here are four housing markets boomers won’t be able to afford in a decade.
Also here are housing markets boomers should consider instead.
4 Real Estate Markets Already Unaffordable for Most Boomers
Some real estate markets won’t even have to wait 10 years to become unaffordable for boomers.
“Boomers without major exchange equity are currently locked out of the most expensive single-family markets,” said Jeff Adams, real estate investing strategist at Home Investors Zone.
As of Dec. 31, 2024, the average value of a U.S. home is $356,585, according to Zillow. Given the average home value of the markets listed by Adams and the one-year value changes according to Zillow below, it’s easy to see why these areas could be unaffordable to a population where many are on a fixed income.
San Francisco Bay Area
- Average home value: $1,242,637
- One-year value change: 1.4% increase
Orange County, California
- Average home value: $1,149,480
- One-year value change: 8.3% increase
Greater Boulder, Colorado
- Average home value: $962,534
- One-year value change: 0.5% decrease
Honolulu
- Average home value: $773,409
- One-year value change: 0.7% increase
In addition to home prices, Adams said high energy and construction costs, as well as property taxes, will rise dramatically over the next decade. He said this will even reduce the buying power of boomers with significant equity in these areas.
5 Additional Markets To Watch
Some areas currently popular with boomers are still affordable for retirees. However, this could change in the next decade.
GOBankingRates recently published a list of the 50 fastest-growing retirement hotspots in the U.S. Some of those cities are listed below and given their current property values and one-year value change, it’s possible these cities will become unaffordable for boomers.
El Dorado Hills, California
- Average home value: $902,483
- One-year value change: 1.3% increase
Longmont, Colorado
- Average home value: $562,063
- One-year value change: 0.7% increase
Mesquite, Nevada
- Average home value: $378,545
- One-year value change: 1.9% increase
Grove City, Ohio
- Average home value: $312,551
- One-year value change: 4.2% increase
Rio Rancho, New Mexico
- Average home value: $344,701
- One-year value change: 3.6% increase
Rising Boomer Home Trends
“The market that will expand for boomers is the new single-story, couple small, slab, energy-efficient unit with a single-car garage, patio backyard and no-maintenance front yard,” Adams said.
As for geographic location, he said boomers will focus on areas adjacent — or as close as they can get — to the metro areas he noted above — San Francisco Bay Area; Orange County, California; Greater Boulder Area and Honolulu.
“Due to the price of land, the boomer units are priced higher,” he said. “Boomers in the future will continue to use their sizable equity to purchase the small stand-alone houses over condos or townhouses — just as they’re doing now.”
As for why they’ll focus on new construction, he said it’s not a coincidence.
“Boomers don’t want to repair, remodel or replace things in older units,” he said. “They also don’t have the energy or the personal resolve, to locate and wrangle crews to do the work.”
Therefore, he said older homes will be left for younger buyers to purchase.
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