According to Freddie Mac’s recent consumer research report, rental demand from Baby Boomers may put a lot of pressure on the rental market by 2020. According to the Freddie Mac survey the report is based on, a large number of Baby Boomers and others aged 55 and older are planning to move to rental units in the future. The report estimates that those over 55 planning to move to a new rental in the next few years includes several million individuals that currently own their homes and that overall, they estimate 5 million Baby Boomers are likely aiming to move to rentals by 2020.
The survey also indicated a lot of other important housing expectations for those over 55 including that they plan to move to rental housing that is the same or less expensive than the housing they are currently in. In respondents 55 and older also indicated in the survey the main aspects they will be looking for when moving to a rental property is affordability (60% of respondent) amenities needed for retirement (47% of respondents) and that the rental is in a community where they don’t have to care for the property and the neighborhood is walkable (44% and 43% of respondent respectively).
The Freddie Mac report sheds light on the massive demand that is set to enter the rental market in the next few years. Furthermore, with life expectancy in the United States averaging at about 79 years old, rental housing aimed at Baby Boomers likely won't see a decrease in demand for two decades.
Also, the large influx of Baby Boomers into a rental market that is already low on supply because of millennials renting longer, and lack of new middle and low-income property development, landlords across the country may see positive rental prices rise particularly in areas where Baby Boomers are retiring.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.