How will the baby boom generation affect the real estate market?
The baby boom generation was born in the years 1946 – 1964 they are named after the boom of births after World War II and the great depression. This generation makes up 21.19% of our population, and with them hitting peak retirement age this will mean big things for the housing market and real estate market.
This generation has consistently made an impact on the economy, culture, and politics with there large numbers and experts are predicting they will do the same to the housing market as many baby boomers will be retiring and relocating within the next couple years.
“households headed by a person aged 65 or over will jump from 24 million in 2015 to 32 million by 2025 that figure will grow even higher to 38 million by 2035, an overall increase of 62 percent” -Ken McElroy
This sort of demand in housing will greatly effect the real estate market, many retirees will be moving out of big cities for a more affordable and consistent housing markets.
Tulsa’s Real Estate Market:
Home values have increased by well over 20% in the last year and with Tulsa being ranked 4th hottest housing market in the United States by Forbes it can be anticipated that Tulsa’s housing market will continue to grow along with the housing demand from baby boomers.
Home Prices have increased over 10% in the past year due to high demand
Due to the high demand for inventory in the Tulsa area, the median home price in Tulsa has increased over $20,000 in the past year alone. It is likely that there are various reasons why we are experiencing some of the highest demand in real estate in history, one of them being the baby boom generation. This generation is moving out of high cost of living areas in droves. With California and New York having the highest cost of living and some of the most dense populations in the country, many baby boomers are retiring and settling into more affordable areas in the midwest like Tulsa and Oklahoma City.
How Does The Housing Market Affect You?
Depending on if your buying, renting, or investing the housing market is something that you should keep your eyes on, currently we are experiencing a sellers market. Meaning, there’s more demand for homes than there is supply. The average days on market in 2021 is 20 days, the average days on market was 31 days in 2020 according to the tulsa association of realtors. In a recent report put out by zillow they states that “While virtually all areas will feel the effects to some degree — between one-fifth and one-third of the current owner-occupied housing stock was impacted in every metro analyzed — this wave won’t hit all at once and won’t strike all markets equally,”
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