Baby-boomer homeowners got rich from skyrocketing house prices. Now they can’t find retirement housing
In the 1950s and 60s, baby boomers began to buy homes as a new generation of middle-class consumers. As cities began to sprawl and urban areas became more accessible, property values skyrocketed, leaving many homeowners sitting on piles of equity.
Now, as these baby boomers approach retirement age, many are finding it increasingly difficult to find a place to call their own in the twilight of their lives. The problem, in many cases, lies with their own success: as prices continued to climb, their once-affordable homes are now worth six figures, or even hundreds of thousands of dollars, in today’s market.
In theory, this sounds like a windfall – who wouldn’t want to retire to a luxurious nest egg built on the sweat equity of their childhood homes? In reality, many are being priced out of their own neighborhoods, leaving them feeling stuck and restless. “I’ve worked all my life, I’ve always been a responsible saver,” says one exasperated homeowner. “And yet, I find myself at the mercy of a system that seems more concerned with profit than with the welfare of its citizens.”
So why are prices so out of reach? It boils down to the classic battle between supply and demand, with a few other factors thrown in. “People are living longer, which means they need to have a place to call home for longer,” explains real estate expert Barbara Corcoran. “At the same time, interest rates are low, and mortgage lenders are loosening up their standards – so buyers are taking advantage of low rates and affordable monthly payments to snap up these overpriced properties.”
Of course, some are still managing to hold onto their homes, while others have been forced to relocate. “I’d be devastated to leave this house, but I may not have a choice,” admits a homeowner who has seen his neighborhood transform into a battleground for would-be buyers. “I grew up in this neighborhood, and to think that someone could outbid me to stay – it’s hard to imagine.”
As boomers scramble to find new homes to call their own, questions are being raised about what it means to age, to retire, and to call a place “home.” Is it merely a place to rest your head, or is it a haven where memories can be made and stories shared? Only time will tell – for now, boomers will continue to wrestle with the consequences of their own success, in the form of a house market that seems determined to outmaneuver them.