What’s Happening with Housing Supply—And What It Means for Buyer

If you’ve been hoping for a surge of available homes as Baby Boomers transition out of homeownership, you may need to adjust your expectations. While projections once suggested a flood of listings as older generations downsized or passed away, new research from the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA) shows that the process is happening much more gradually than anticipated.

What About the Housing Supply?

While over 8 million homes are expected to become available over the next decade as older Americans leave homeownership, the increase in supply won’t happen all at once. Instead, it will be a slow trickle rather than a sudden wave. Approximately 1 million homes will be released each year due to the passing of their owners, a number that is nearly double initial projections due to higher homeownership rates among older adults.

However, fewer homes have been sold by older generations than expected. Since 2015, Baby Boomers have been holding onto their homes longer, contributing to ongoing inventory shortages. Had homeownership patterns remained at 2014 levels, more homes would have entered the market by now. This means that while future supply is expected to increase, demand for these homes may also remain high, as many prospective buyers have been waiting for more inventory to hit the market.

What This Means for Buyers

For buyers frustrated by the historically competitive housing market, patience is still necessary. The anticipated wave of homes hitting the market simply isn’t materializing as quickly as once thought. While inventory is expected to grow over the next decade, the increase will be gradual, making it essential for buyers to remain prepared to act when opportunities arise.

With demographic shifts shaping the market, those looking to purchase a home should stay informed and flexible. If you’re planning to buy, working with me as your real estate agent will ensure you’re prepared to navigate this evolving landscape. I can help you stay ahead of market trends, identify the right opportunities, and position yourself for success in a competitive market. Let’s connect and put a strategy in place to find your next home!