The long expected “Silver Tsunami” may finally be at hand, but the real question is where are all those senior homeowners going to go?
According to a new report from the Urban Land Institute, demand for senior housing continues to climb to record levels as baby boomers finally decide to move on from their long-held homes and unleash a wave of houses onto the market. But inventory of properties suitable for aging Americans has grown by just 1% this year.
As the report, “Emerging Trends in Real Estate 2026,” says, in several places, the number of senior housing units being delivered to the market is less than the number coming on line, resulting in either flat or even negative growth.
That doesn’t bode well for seniors looking to move down to smaller houses, assisted living properties or even accessory dwelling units (ADUs) on one of their children’s properties. The number of those 75 or older is projected to double by 2040.
One alternative is to rent rather than own. The “Emerging Trends” report notes that baby boomers age 65 to 74 is the fastest growing cohort of renters. Another is to remain in place and perhaps remodel to meet their current needs.
Meanwhile, the National Association of Realtors (NAR), noting that 70 million Americans are now 65 or older, is proclaiming that the tsunami “is here,” and that boomer buying power compiled over decades of ownership is reshaping the market.
“Baby boomers are really holding the cards in the real estate market,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “They have earned a tremendous amount of housing equity … and right now, they’re making moves either in retirement or looking forward to retirement.”
According to NAR’s 2025 Home Buyers and Sellers Generational Trends Report, seniors are leveraging the proceeds from their long-owned homes to fund the next chapter of their life. After owning their homes for 13 to 16 years, and earning 50% or more in home appreciation, they have the financial flexibility to move to a home that better fits their stage in life, the report says.
Among recent boomer buyers, more than half used the proceeds from the sale of one house to purchase another.
At the same time, there is a large segment of baby boomers who want to stay put, some because they love their homes, some because they don’t want to pay capital gains taxes, and some because the choice of new dwellings is meager at best. But according to AARP, approximately one in 10 homes nationwide can safely accommodate senior living.
Without thoughtful upgrades, particularly to kitchens and bathrooms, most homes can be difficult for seniors to navigate, so remodeling is their only choice if they choose not to move.
