Many expect that when people reach a certain age, they’ll want to sell their homes and downsize. But a recent Bank of America survey found that 70% of homeowners between the ages of 45 and 76 have decided to stay put and age right where they are.
After all, 78% say they like their current home and see no reason to move, and 22% have put so much work into their existing property that they want to stay.
Some reasons for remaining in their current property for aging in place among those who’ve not yet retired include avoiding high home prices and interest rates (32%) and benefiting from their current low mortgage payment or a paid-off home (20%).
In addition, about 95% of current mortgage holders have loans with rates of 5% or less, making them hesitant about giving up their low mortgage rates.
Moreover, renting, often an appealing option for downsizers, may be less attractive for those on a fixed income because of fluctuating rental costs.
Bank of America notes that decisions by baby boomers and Gen Xers to keep their homes can affect the country’s already tight home inventory and make it tougher for the next generations to buy homes.
But many in these two demographic groups plan to lend a hand to those future buyers by:
Jason Gelios, SRES-Senior Real Estate Specialist, Author, Public Speaker, and Expert Media Contributor of real estate expertise across the globe.