Retirees are choosing to stay put, holding tight to the homes they’ve built their lives around. But this growing trend is creating ripples far beyond their doorsteps.

Could these choices be fueling a hidden housing crisis affecting everyone?


The trend of aging in place is not just a personal choice; it's a phenomenon with ripple effects across the housing landscape.

As a significant portion of baby boomers choose to remain in their homes, the expected turnover of family-sized houses to younger generations is stalling.

This creates a bottleneck effect, where the supply of available homes is drastically reduced, exacerbating the housing shortage and driving up prices.


The statistics are telling: a Redfin study indicates that a whopping 78% of baby boomers plan to stay in their current homes during retirement.

This choice makes sense, considering the deep emotional ties to home and the significant costs of relocating.

However, it leaves millennials and Gen Z—many of whom are starting families and in need of larger living spaces—scrambling for suitable housing.
For retirees, the decision to age in place often comes with the need to adapt their homes to changing mobility and health needs.

Installing ramps, elevators, and zero-entry showers can be prohibitively expensive, especially for those on fixed incomes.

And while these modifications are essential for accessibility, they can paradoxically decrease a property's appeal to younger buyers who do not require such features.


A National Association of Home Builders survey revealed that 56% of potential homebuyers would be deterred by the presence of an elevator.

This presents a catch-22 for retirees: adapt your home for your needs and potentially diminish its market value, or struggle with a home that no longer suits your physical requirements.

The housing market doesn't exist in a vacuum; it's deeply intertwined with the broader economy.

Baby boomers, who hold a substantial share of home equity, have been able to leverage their properties for wealth accumulation and retirement security.

In contrast, younger generations face an uphill battle in achieving homeownership, contributing to a widening wealth gap.

As real estate broker Alexandra Gupta points out, the boomer stronghold on the housing market not only affects property availability but also has broader economic consequences.

“Baby Boomers are increasingly choosing to ‘age in place,’ meaning they remain in their homes longer instead of selling to downsize or relocate. This trend is contributing directly to the housing shortage, as millions of homes that would otherwise be available to younger buyers remain occupied,” Gupta explained.

With homeownership increasingly out of reach, millennials and Gen Z may find themselves renting for longer periods, which could drive up rental prices, especially in sought-after metropolitan areas.


Addressing this housing crisis requires innovative thinking and collaborative efforts.

Jesse Saginor, associate professor of real estate development, suggests increasing funding, subsidies, tax credits, and zoning flexibility to construct affordable senior housing.

“One solution is to significantly increase funding, subsidies, tax credits, and/or zoning flexibility to allow for the construction of affordable senior housing so that seniors have somewhere affordable to move, given that many may only live on Social Security and little else.

So, that solution focuses on building housing for seniors that is affordable, and, assuming they are willing to move, also attainable. It removes the cost-prohibitive nature of moving to housing given their fixed incomes,” Saginor said.

This approach could provide retirees with viable options to downsize without financial strain, thereby freeing up larger homes for younger families.

However, Saginor also emphasizes that a holistic approach is necessary.

Building housing that caters to all income levels and age groups is crucial to mitigating shortages, regardless of fluctuating mortgage rates and economic conditions.

“Until we build for all segments of population in terms of income and age, there are bound to be shortages irrespective of mortgage rates and inflation, because the demand for housing tends to be dynamic while the supply of housing is largely static.”

As we navigate these complex issues, it's important to recognize that our housing decisions impact not only our lives but also the broader community.

Addressing these challenges calls for collaboration and understanding from all sides—homeowners, policymakers, developers, and community leaders alike.
Have you faced challenges in adapting your home for retirement? Are you considering downsizing but find the market too prohibitive? Or perhaps you have insights into potential solutions for this multifaceted issue? Share your thoughts and experiences in the comments below.