What is a Silver Tsunami? How Will It Impact Real Estate in Dayton?

What is a Silver Tsunami? How Will It Impact Real Estate in Dayton? If you are a Dayton area homebuyer and have felt the pressure of a challenging real estate market you are well aware that a large reason the homebuying process is so difficult is due to a continued limited supply of homes for sale. 

This is not just the case in Dayton but almost every area around the country. More buyers are looking for homes to purchase than there are homes available. Some real estate experts are predicting a Silver Tsunami, and are hopeful this will help to correct the market in the future. 

What is a Silver Tsunami? 

A Silver Tsunami is an influx in the housing supply that is caused by the baby boomer generation choosing to downsize to a new home or passing away. Financial analyst Meredith Whitney who also predicted the housing crisis of 2007 in 2008 shared at the Invest Conference in December 2023 that a silver tsunami could be coming as soon as 2024.

The possibility of a Silver Tsunami happening has been talked about for a few years. In 2019 Zillow reported that over 20 million homes could hit the market by the year 2037 as a result of generations in their golden years aging out of homeownership. Analyst Meredith Whitney believes that this number is more around 30 million.

The impact the Tsunami is predicted to make on the real estate market

Numbers from the AARP show that 80% of people age 50 and older own their home. When this generation of homeowners decides to downsize or cash in on the equity of their home or pass away this will release more homes into the real estate market. It is predicted that the downsizing decisions of this generation of homeowners will boost the supply of properties for sale significantly. As everyone knows the real estate market in many locations across the country has seen incredible shortages for years on end. It is predicted that the market is short about 5.5 million homes for sale to even out the market conditions. This shortage has been one of the driving factors behind home prices remaining elevated and buyers seeing challenges in finding a home they love.

Many people both experts and everyday homebuyers have been patiently and sometimes painstakingly awaiting some sort of relief in the housing supply to help in the process of purchasing a home. Some real estate experts believe that an increase in home inventory will also help the rate of increase in home prices. It is not expected to decrease home prices but it is expected to help keep home prices from climbing at the rapid rate we saw just two years ago.

Some market analysts and experts are predicting that the silver tsunami will not be too much of an actual tsunami of homes brought to the market to begin. They're expecting more of a small wave. This wave will bring hope and better conditions for trying to purchase a home in Dayton and in many areas around the country.

Some areas are expected to have a bigger wave than others though

Some markets will see a bigger wave than others, especially in areas where there is a higher population of Americans aged 50 and above. As the population demographic creates a sort of boomer hotspot. Some of the hotspots to see a big boost from the Silver Tsunami by 2037 include Tampa, Miami, and Orlando Florida. They also include Tucson Arizona and right here in Dayton Ohio. This is very promising news for people planning to buy a home in Dayton soon.

If you are searching for a home in the Dayton area or in the Columbus area I can help. I am here to find a home that you can afford and that you will love in a location that fits your lifestyle needs. Contact me anytime with any Dayton or Columbus real estate needs.

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