Baby Boomers Hold Half of U.S. Home Equity

As baby boomers face challenges in downsizing due to high mortgage rates and a lack of suitable affordable homes, they are increasingly choosing to stay put. A report by Freddie Mac highlights that boomers, who account for 20% of the U.S. population and hold half of the nation's home equity valued at $17.3 trillion, are planning to bequeath their properties to their children rather than using the equity for retirement. Approximately 75% of boomers intend to leave their homes or proceeds from sales to their heirs, with only 9% planning to tap into their home equity for retirement funding. This generational wealth transfer is expected to create a 'Wave of Wealth' for younger generations, as homeowners express significantly more confidence in their financial security compared to renters. The report also notes that fixed-rate mortgages have played a crucial role in building this wealth, with many boomers enjoying low interest rates. Overall, the economic impact of baby boomers on housing and wealth is substantial, with implications for both current homeowners and future generations.