Azael Kayser

Boomers Plan to Pass $17T in Equity to Children

Boomers Plan to Pass $17T in Equity to Children

Freddie Mac reports 75% of boomer homeowners plan to leave their home or its sale proceeds to family, with home equity totaling $17 trillion nationwide.

MCLEAN, Va. — Three quarters of homeowners born before 1964 are likely to leave much of their $17 trillion in home equity to their children, according to Freddie Mac’s latest analysis of the housing perceptions, preferences and plans of baby boomers.

Freddie Mac’s new, comprehensive survey of respondents 60 or older also highlights that most boomers who own a home feel confident they will have a financially comfortable retirement. This is accompanied by a growing preference of some boomers to downsize.

“As the youngest baby boomers turn 60 this year, this research provides an opportunity to learn from a generation that has weathered multiple economic cycles and pivotal moments in recent history, including the Great Financial Crisis and pandemic,” said Sonu Mittal, SVP and head of Single-Family Acquisitions at Freddie Mac. “The value we see placed on homeownership and its contribution to the long-term financial success of American families underscores the importance of our mission to make homeownership possible for more families across the country.”

Freddie Mac has surveyed and tracked the attitudes of baby boomers for nearly a decade. As of 2024, there were 65 million baby boomers, accounting for 20% of the U.S. population and 36% of total homeowner households. Total household net worth has increased by approximately $44 trillion, or $332,000 per household, since the pandemic (Q4 2019 to Q2 2024). Of that, boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation.

This latest research follows two prior surveys, the first in 2016 and again in 2021, in which Freddie Mac sought to track boomers’ attitudes and perceptions in several key categories. Key findings include:

Perceptions of retirement

Aging in place remains preferable, but new trends have emerged

Younger generations positioned to receive trillions in home equity from boomers

Boomers will protect their home equity in retirement

“Clearly the baby boomer generation has benefited from our country’s unique housing finance system, and it is imperative that we ensure this system remains in place to help boomers and the many generations that follow,” Mittal continued. “To that end, Freddie Mac has led on efforts to help homeowners access the equity in their home without affecting their interest rate, created offerings that help defray downpayment and closing costs, and enhanced our technology to help those with thin credit files qualify for a mortgage. With an eye toward the future, we also expanded our efforts to educate the public about homeownership and created resources to help owners appropriately plan for the transfer of wealth to their children and families.”

Methodology

The online survey, conducted April 27-May 3, 2024, included interviews with 3,003 homeowners and renters aged 60-78, with data weighted to be representative of a national sample of U.S. adults within the baby boomer generation.

Source: Freddie Mac

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