Financial Fitness: The ‘Silver Tsunami’ & what it means for homebuyers

The following article appears in the Canton Citizen’s 2025 Financial Fitness Guide. See this week’s edition for information and tips from local professionals on a wide range of financial topics, including asset protection, real estate, tax preparation, and much more.

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If you’re a first-time homebuyer or someone struggling to find an affordable home, you may have heard about the anticipated “Silver Tsunami” — the idea that a wave of Baby Boomers selling their homes would finally provide much-needed inventory relief. But rather than a sudden flood of homes hitting the market, what we’re actually seeing is more of a gentle tide. While some boomers are downsizing or relocating, the mass movement many had hoped for just isn’t happening yet. Let’s explore why.

Not all Baby Boomers plan to move

Melissa Mayer

One of the biggest reasons housing supply hasn’t significantly increased is that many Baby Boomers don’t want to leave their homes. According to a study from AARP, more than half of adults aged 65 and older plan to age in place, modifying their current homes to fit their evolving needs rather than selling them.

Even for those who might consider moving, there are major challenges. The lack of affordable, smaller homes in their communities makes downsizing difficult. For many, staying put simply makes more sense than competing in a market where home prices remain high and suitable options are scarce.

As an article from Inman highlights: “Many boomers have no desire to retire fully and take up less space . . . Many will modify their current home, and the wealthiest will opt to have multiple homes.”

Even those who do move won’t do it all at once

For those Baby Boomers who do decide to sell, they aren’t doing so in droves. Instead, their transition will happen gradually over time. According to Freddie Mac, “We forecast the ‘tsunami’ will be more like a tide, bringing a gradual exit of 9.2 million boomers by 2035.”

Mark Fleming, chief economist at First American, echoes this sentiment: “Demographics are never a tsunami. The Baby Boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”

The lack of affordable housing is a major hurdle

One of the biggest reasons boomers are staying put? They have nowhere to go. The housing shortage affects not only first-time buyers but also retirees looking to downsize. Many would love to remain in their communities but find that suitable, single-level homes or smaller properties are either unavailable or out of their budget.

This is where the housing market remains stuck — boomers holding onto their homes because there aren’t enough affordable options for them, and younger buyers struggling because existing homes aren’t being freed up fast enough.

What this means for first-time buyers

Although we aren’t seeing the immediate relief some had hoped for, there is still hope on the horizon. Over time, the Great Wealth Transfer will help shift assets, including homes, from older generations to younger buyers. An estimated $84.4 trillion will transition to heirs by 2045, allowing more Millennials and Gen Z buyers to access homeownership.

The Bottom Line

While the “Silver Tsunami” isn’t happening overnight, it is still unfolding, just at a slower pace. The key takeaway? Inventory relief is coming, but it will take time. Until then, prospective buyers and sellers alike need to stay informed and strategic about their housing decisions. Whether you’re waiting for more homes to hit the market or looking for the right opportunity to downsize, understanding these generational shifts will help you navigate the housing landscape with confidence.

How Mayer Realty Group can help

Navigating the complexities of today’s housing market requires expert guidance and a team that understands both the challenges and opportunities ahead. At Mayer Realty Group, we specialize in helping buyers and sellers make informed decisions that align with their unique needs. Whether you’re looking to purchase your first home, sell your current one, or explore downsizing options, our experienced agents are here to guide you every step of the way. We are committed to providing a smooth and stress-free process, ensuring you achieve your real estate goals with confidence and ease.

For more information, visit mayerrealtygroup.com.

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