Housing Market: Baby Boomers Aren’t Downsizing Anymore

By: Anneken Tappe · January 31, 2024 · Reading Time: 2 minutes

Downsizing’s Disappearance

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.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender