
A recent study by Freddie Mac has unveiled some enlightening trends about the housing wealth among baby boomers.
By mid-2024, this generation had accumulated around $17 trillion in home equity, which is a staggering figure that outstrips the projections from various other organizations.
In fact, Freddie Mac indicates that baby boomers currently hold nearly half of the total home equity in the United States.
Financial Security and Family Legacy
Interestingly, the study also highlights that a large percentage of homeowners aged 60 and above feel secure about their financial situations as they approach retirement.
Many of them prefer to keep their housing wealth within the family.
Approximately 75% of those surveyed expressed a desire to pass on their homes or the proceeds from selling their properties to their loved ones.
Declining Confidence in Retirement
However, despite this immense wealth, confidence in achieving a comfortable retirement is on the decline.
For example, in 2021, 81% of baby boomers felt optimistic about their retirement prospects.
By 2024, that figure had dropped to just 68%.
While a strong inclination to age in place persists—68% of respondents plan to stay in their current homes—those considering a change are mostly inclined to downsize.
Only a mere 9% of survey participants are open to using their home equity as a financial tool for retirement purposes.
The Importance of a Solid Housing Finance System
These revelations provide a glimpse into the attitudes of a generation that has weathered various economic storms over the years.
Freddie Mac emphasizes the importance of establishing a solid housing finance system that can benefit baby boomers today while also paving the way for future generations.
Source: Housingwire