Zillow: Silver Tsunami Won't Solve Housing Crisis

A new Zillow report indicates that the anticipated 'silver tsunami' of homes from older Americans downsizing will likely not alleviate the U.S. housing affordability crisis. Although there are about 20.9 million empty-nest households nationwide, these homes are predominantly located in more affordable markets, not in high-demand areas like Seattle, where the median home value is $739,858. Zillow's senior economist, Orphe Divounguy, emphasized that these empty-nester households are concentrated in cities with already accessible housing, such as Pittsburgh and Buffalo, rather than in expensive coastal job centers where young professionals are relocating. The mismatch between the supply of homes and the demand in critical markets underscores ongoing affordability challenges, as younger generations continue to enter the housing market. Additionally, many older homeowners are reluctant to sell, with baby boomers making up a significant portion of the market and showing little intention to downsize. Overall, while the concept of a 'silver tsunami' offers hope, its impact on resolving the current housing crisis appears minimal.