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The Silver Tsunami:  What It Is and What It Could Mean for the Housing Market

Writer's picture: Joe FrankJoe Frank

Updated: Jan 29

The “silver tsunami” is a term used to describe a gradual shift on the horizon as “baby boomers” - those born between 1946 and 1964 - begin to transition out of homeownership.


This generation has shaped much of the housing market for decades, and their decisions about selling, staying, or passing homes to family members will have a lasting impact.


The silver tsunami represents a slow transformation rather than a sudden event. While it will bring changes to the national housing market, its effects are expected to be notable here in the Puget Sound region in the coming years.



What Is the “Silver Tsunami”


The silver tsunami refers to the eventual transition of these homes as baby boomers retire, downsize, or pass them along to heirs. This shift was expected to bring more homes to the market over the last several years, increasing supply and easing pricing, but it simply has not come to fruition at this point, at least not to the degree expected. Reality is more complex with all the political and economical variables.


From data and insights provided by ConstructionCoverage.com (1/5/25),  Baby Boomers, now aged 60 to 78, represent over 20 percent of the U.S. population, but own 37 percent of homes across the nation. In Washington State, their presence in the housing market is also substantial.


In the Seattle metro area, baby boomers own 32.8 percent of homes. In the Mount Vernon - Anacortes area, this number rises to 43.3 percent! Statewide, baby boomers own 36.8 percent of homes, which places Washington 14th in the nation in terms of the percentage of homes owned by the baby boomer generation.



How This Might Shape the Housing Market


Across the country, the silver tsunami could create gradual but noticeable changes.


More homes will come onto the market, but this increase will be slow and uneventful as many boomers are choosing to stay in their homes longer than initially predicted.


In areas where inventory does grow, there could be less pressure on home prices to rise. This could create more opportunities for younger buyers, especially those who have been struggling with affordability.


Some boomers are choosing to relocate to lower-cost areas or warmer states like Florida, Arizona, and Texas. As they move, this could create openings in local housing markets while also driving up demand and prices in popular relocation spots.


Conversely, many boomers are planning to keep their homes in the family rather than selling them. This decision could limit inventory in the short term but may lead to an eventual increase in homes being sold as younger generations make decisions about inherited properties.



What About the Puget Sound Region


The Puget Sound area, including cities like Seattle, Bellevue, and Tacoma, has a large number of baby boomer homeowners. The choices made by this generation will play a key role in shaping the local market.


Many boomers in the Puget Sound region are choosing to stay in their homes. Selling and moving can be expensive, especially in high-demand areas, and ageing in place allows them to remain in their communities near family maintains stability. This decision does contribute to the tighter inventory that has been a persistent challenge for buyers in our region.


When boomers in the Puget Sound area do sell, their homes are often located in desirable neighborhoods. These properties tend to attract families looking for more space but may be out of reach for first-time buyers due to their higher price points.


There is also increasing demand for smaller, lower-maintenance homes. Many boomers who are downsizing are searching for single-story homes or condos that are easier to manage, driving competition and prices in this segment of the market.


While some boomers remain in the Puget Sound area, others are relocating to less expensive parts of Washington, such as Spokane or the Tri-Cities. This trend opens up opportunities in smaller markets while slightly reducing competition in the region’s larger metro areas. Again, the affect on price is minimal, but it does help the housing supply shortage.



Looking Ahead


The silver tsunami is not expected to bring a dramatic wave of changes all at once. Instead, it will unfold gradually, bringing steady shifts to the housing market over time.


As homes transition out of baby boomer ownership, inventory will grow. This increase is likely to be most noticeable in suburban areas where many boomers live.


In areas with large concentrations of baby boomer homeowners, like the Puget Sound, there could be localized shifts in housing availability and pricing as these transitions happen.


Over time, younger buyers will see more opportunities as homes become available through sales or inheritance. This gradual change could help ease some of the competition in the market, though it may take years to fully play out.



A Final Thought


The silver tsunami is not about baby boomers leaving the housing market all at once. It is a gradual transition that will shape the market over the coming years. For the Puget Sound region, where so many boomers have put down roots, their decisions will continue to influence housing trends.


Whether you are a baby boomer making decisions about your home or a younger buyer hoping to enter the market, this shift is something to be aware of. The silver tsunami represents not just a change in the housing market, but also an opportunity to prepare for what is ahead and navigate it thoughtfully.


Thank you for reading. If you have any questions on the local or national housing market, drop me a line!



Listen to the podcast for this article. This podcast is AI generated from this blog article.



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