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survey conducted by Freddie Mac predicts Baby Boomers could set off a renting boom by the end of the decade.
According to the Freddie Mac survey of housing plans and perceptions of people born before 1961, millions of Baby Boomers and others 55 years or older are planning to sell their homes and to move to rental units.
Specifically, the survey shows an estimated 6 million homeowners and nearly as many renters prefer to move again and rent at some point in the coming future. Of those homeowners and renters that expect to move again, over 5 million indicate they are likely to rent by 2020.
Further, a large majority of renters (79 percent) and homeowners (83 percent) 55 years or older who expect to rent their next home expect it will cost the same or less than their current one.
A population this large that expects to move into equally or less expensive rental housing is another indication of the pressure that will be put on already tight rental inventories and affordability in the coming years.
Additionally, the wave of Boomers looking to rent has lead to a unique challenge for property management companies: finding ways to appeal to both Boomers and Millennials, according to Property Management Insider.
Floorplans are growing to accommodate younger renters who are waiting until later in life to make home purchases and older renters want extra space similar to what they may have had before downsizing from a house.
The mix of Millennials and Boomers are challenging developers to get more creative with floorplans, and with property amenities
Successful management companies are finding ways to appeal to both generations with features such as modern, comfortable shared spaces and premium internet and cell coverage across the property.
While this trend of Boomers looking to move to rental units may have been unexpected, the millions of adults looking for new rental properties should have a positive impact on the industry.
Anthony Ragland