For years, selling a single-family home and moving to smaller accommodations after the kids left the nest was a financial no-brainer for older homeowners. But that has changed.
Baby boomers are increasingly choosing to stay put in houses that offer more space than what they might need instead of downsizing — avoiding taxes, and the cost of moving.
Why Not Sell?
Many boomers have watched their home values skyrocket over the past years, especially during the red hot housing market of the pandemic. But selling could subject them to chunky capital gains tax bills.
On top of that, the housing market remains tight: Desirable units are hard to come by, and interest rates remain elevated.
This is contributing to the limited housing inventory available to prospective home buyers across the country.
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