NEW YORK, NY — Baby boomers are staying put, and many are pouring serious money into the homes they already own. With mortgage rates still far above the pandemic lows, a growing share of older homeowners see little reason to give up low or paid-off loans for a new monthly payment near today’s higher rate levels.
That choice is helping keep many large houses off the market at the same time younger buyers, especially millennials with children, are trying to find room to grow. The result is a housing standoff: older owners are investing in comfort and accessibility, while younger families face tight supply and expensive entry points.
Why mortgage-free boomers are holding onto their houses
More than one-third of all U.S. homeowners are baby boomers, and more than half of them do not have a mortgage, according to John Burns Research and Consulting. That gives many of them a major financial advantage in a housing market where borrowing costs remain elevated.
Eric Finnigan, vice president of demographics at the firm, has said that being mortgage-free is a powerful reason many boomers are not moving. For owners who already have a low interest rate, or no loan at all, leaving a current home can mean taking on a far more expensive payment just to end up in another house.
Mortgage rates reached more than a two-decade high in October 2023 and still sit around 7.5% in the example cited by Fortune. For many older homeowners, that makes staying put the cheaper and simpler option.
Large homes are still concentrated in older hands
The imbalance between generations is especially clear in bigger houses. A 2024 Redfin analysis found that empty-nest baby boomers own 28% of the nation’s largest homes, defined as homes with three bedrooms or more. Millennials with children own just 14% of those houses.
That gap matters because families with children often need more space, yet the homes that fit those needs are less likely to come on the market. Redfin said the landscape has changed sharply over the past decade, when young families were just as likely as empty nesters to own large homes.
At the same time, existing home sales have fallen to their lowest level in nearly three decades. With fewer owners selling and fewer buyers able to jump in, inventory stays tight and the competition for livable family-sized homes remains intense.
Renovating instead of relocating is becoming the default
For many boomers, aging in place now means remodeling the home they already know. Finnigan has said many older homeowners are improving current houses not only for safety, but also to make them more comfortable and luxurious for the long haul.
That can be a much easier decision than shopping for a smaller place, especially when retirement housing remains scarce. Some owners have lived in the same home for more than a decade and say they have no intention of leaving, even if the house is larger than they need.
Instead of moving, they are upgrading kitchens, bathrooms, and other spaces so they can stay in place longer. For many, the emotional pull of a familiar home and yard outweighs the inconvenience of maintaining extra square footage.
Some homeowners are spending six figures to prepare for aging
The money being spent on these projects can be substantial. Some baby boomers have spent tens of thousands of dollars, and in certain cases hundreds of thousands, on renovations meant to make their homes more updated, comfortable, and safe as they age.
One example is Brenda Edwards, a Californian in her seventies, and her husband, who spent more than $100,000 on renovations to make their home wheelchair-friendly in case they ever need that kind of accessibility. She told the Associated Press in 2024 that the couple felt comfortable staying because they already had a pool, a spa, and a yard they had worked hard to improve.
Edwards also said it would be too difficult to buy something else, especially because their house was nearly fully paid off. For homeowners in that position, renovation can look less like a luxury and more like the practical way to avoid a costly move.
Houzz and Leaf Home say accessibility features are in demand
Home renovation and design company Houzz says baby boomers lead renovation activity across all generations, based on its 2024 Houzz & Home Study. Chief economist Marine Sargsyan said many homeowners are upgrading their current houses for the long haul rather than taking on higher mortgage rates.
Houzz is seeing more interest in universal design, especially in kitchens and bathrooms. That includes wheelchair-accessible pathways, extra lighting, pull-out cabinets, rounded countertops, non-slip flooring, and grab bars.
Leaf Home has also reported growing demand for walk-in showers, tubs, and stairlifts. Former chief growth officer Nina George said the company expects more boomers to keep making changes so their homes remain safe and comfortable as they age.
Millennials are buying more homes, but the tug-of-war continues
The market is not moving in only one direction. Some boomers are selling, and some millennials are buying. The National Association of Realtors says millennials have surpassed baby boomers as the largest generation of homebuyers.
Jessica Lautz, the association’s deputy chief economist and vice president of research, said in a recent generational trends report that millennials rebounded this year to take the largest share of homebuyers. That keeps the generational tug-of-war alive even as older owners continue to dominate renovation activity.
For U.S. housing, the broader picture is clear: older owners are staying put longer, younger families are competing for limited supply, and the homes that would suit both groups are often the hardest to find. That tension is likely to shape buying and remodeling trends for years.
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