Though many thought it would be at least ten years before the first wave of baby boomers decided to downsize and touch off another wave of home selling, there is anecdotal evidence that the boomer generation is pulling up stakes now rather than waiting for retirement.
According to The Christian Science Monitor, baby boomers in their 50s are moving to smaller homes, condos, "active adult" communities, or apartments while they are still working. Downsizing, says the Monitor, is not a function of income, instead baby boomers tend to downsize as the nest empties and they don't require as much space.
"Boomers may have an adventurous spirit, following careers, following dreams," says Carol Orsborn, co-chair of FH Boom, a marketing group that studies this generation.
The Over-50 Council of the National Association of Home Builders says that approximately 6 percent of Americans between the ages of 55 and 64 move each year.
Boomers have an easier time letting go of material possessions, unlike their parents. The older generation has a hard time divesting their possessions, says Lisa LaCount, author of "1,001 Active Lifestyle Communities." "They have family heirlooms and large pieces of furniture. They have a lifetime around them."
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"Baby boomers will have an easier time parting with things," says Margit Novack, president of Moving Solutions in Haverstown, Pa. "They're less invested in things because of their monetary value. Boomers grew up in an age of everything being disposable. Many are still working. They look for the most expedient way to get rid of stuff."
However, boomers still require more space than their parents. According to Bruce Nemovitz, a real estate broker in Milwaukee, boomers typically look for 1,800 to 2,400 square feet of living compared to their parents who preferred 900 to 1,200 square feet.
As this wave of downsizing continues, look for the inventory of larger homes to remain on the market longer and for smaller, more affordable homes to sell relatively quickly. But this new influx of potential buyers isn't great news for the housing market. If boomers can't sell their large homes to the small pool of generation X & Yers looking to trade up, prices will likely fall.
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