Baby boomers and others aged 55 or older, comprising up to several million current home owners, say they plan to move to rental units in the next few years, according to Freddie Mac’s newly released 55+ Survey of housing plans and perceptions of those born before 1961.
An estimated 6 million home owners and nearly as many renters prefer to move again and rent at some point, the survey shows. More than 5 million say they are likely to rent by 2020.
“When a population this large expects to move into less expensive rental housing, we have to expect it will create significant new pressure on both the supply and cost of existing affordable rental housing,” says David Brickman, executive vice president of Freddie Mac Multifamily.
Seventy-one percent of nearly 6,000 home owners and renters surveyed say they plan to rent their next home. The top factors that they say are “very important” in influencing their next move are: affordability (60 percent); amenities needed for retirement (47 percent); living in a community where they are no longer responsible for caring for the property (44 percent); and being in a walkable community (43 percent).
Respondents also say they don’t want to move far next time they move. Thirty-one percent say they would likely relocate to a different neighborhood in the same city, while 23 percent say they would like to move to a different property in the same neighborhood. Eighteen percent say they would like to move to a different city in the same state and 24 percent would move to a different state.
Nearly six out of 10 of the 55-plus renters surveyed say they prefer to either move closer to their families or in with them. Hispanic single-family renters were most likely to say they would like to move closer to family, while Asian-American renters were the most likely to say they plan to move in with their adult children one day.
Source: Freddie Mac