What is the Silver Tsunami and how will it affect Florida’s real estate market? Let’s take a look at everything you need to know about this phenomenon!
What Does the Impending Silver Tsunami Mean for Florida’s Real Estate Market?
There is a real estate market phenomenon on the horizon that has been dubbed as the “Silver Tsunami”. It refers to the situation in which baby boomers are aging. They currently account for 22.9% of the population at 74 million. Although younger generations are beginning to outnumber this generation, baby boomers still own a whopping 1/3 of American homes. The fact of the matter is that in the not too distant future, baby boomers will be leaving their homes. They will move into senior living facilities, live with a loved one, or unfortunately pass away. This means there will be a flood of houses available on the market for potential buyers.
What Does the Silver Tsunami Mean for Florida?
Florida is a popular retirement destination due to its proximity to the ocean, warm weather, and plenty of activities. In my particular area, Lake Mary is known for warm, welcoming neighborhoods, shopping, fine dining, golf, and being within close proximity to Orlando’s national attractions. These characteristics make it a very popular destination for retirees.
Florida is one of the states along with Arizona and New York, that the Silver Tsunami is expected to hit the hardest. In fact, according to World Property Journal, there will be an estimated 20 million homes back on the market during the mid-2030s.
If Florida remains a hotspot for retirement, this means there will once again be ample housing available for those looking to purchase a home. This will be a change from the current situation. There has been an inventory shortage of homes for sale in the lower and mid-price ranges. If Florida decreases in popularity this could very well mean a housing inventory surplus.
What Do We Know for Sure?
What exactly does this mean for Florida’s real estate market? At this point, we can only make speculations based on current trends. Only time will tell for sure! One thing is for sure, the Silver Tsunami will have a huge impact on Florida’s real estate market.
I’m Gitta, with Gitta Sells & Associates. My team and I are more than happy to answer any questions you might have when it comes to buying your next home or selling your current home. Until next time, have a good week!