Posted about 1 month ago

Will Baby Boomers sell their houses? Effects on Multifamily

A survey of of over 1500 American Homeowners aged 60-75  from American Advisors group says that 82% of survey respondents said they would prefer to live out their remaining years in their current home if they can.

How does that impact the Worcester Multifamily housing market?

First we would need to know how many of these properties are owned people living in them.  I would say that the number is slim.  

However, this does impact multifamily if buyers who would prefer to live in Single Family homes were pushed into the 2 and 3 family market.  Additionally they may be forced to stay renters longer then they had expected.

This lack of Single Family inventory turnover should force increases in prices of "owner occupied" 2 and 3 family homes in predominantly single family neighborhoods like the West Side and Burncoat/Greendale.  If these Baby Boomers stay in their SF homes or even in their 2 family homes, it will restrict supply and increase demand and price.  It will also drive up rental prices in these same neighborhoods which people want to live in.

It may have an impact in the larger MF market, but that would simply be due to lack of rental units (less people move to FL to retire) and more people continue to live in Worcester.

This makes it a good time to invest in multi family housing as this survey logically means that rents will increase.