Hundreds of Thousands of Baby Boomer Homes Expected to be Vacant, but Transfer Rate Slower Than Anticipated in Switzerland and Beyond

As the baby boomer generation ages, hundreds of thousands of homes across the world are expected to become vacant. However, the transfer of these properties to the next generation is likely to happen at a slower pace than many anticipate. Switzerland, one of the wealthiest countries in the world, has a low home ownership rate compared to Europe and North America. The country’s ownership rate stands at 36%, making it a “post-ownership society,” according to the New York Times.

The high home ownership rate among this generation is due to a period when new construction was booming. However, as they age, many baby boomers are reluctant to sell or move out of their homes for various reasons. They may find moving too stressful or prefer to grow old in their own homes rather than downsize. Additionally, financially, they may have already paid off their mortgages or be paying significantly lower rates than current rental costs.

Despite predictions that the number of inherited or sold properties will increase as this generation grows older, many owners still hope to keep the property within their families. Factors like net immigration rates also impact real estate markets. While experts predict some softening in the market in future years, there won’t be a sharp decline in prices or demand for properties.

Planning to sell or buy property requires careful consideration of factors like densification strategies, interest rate developments and affordability requirements for loans. Pensioners should take note of these factors before making any decisions about their real estate investments during old age.

In conclusion, while hundreds of thousands of homes belonging to baby boomers are expected to become vacant in coming decades, it is unlikely that they will be transferred quickly as hoped for by many. Switzerland’s low home ownership rate and high concentration among this demographic make it an interesting case study in post-ownership societies.

As such, those planning real estate investments should carefully consider factors such as densification strategies and interest rate developments when making informed decisions about buying or selling properties during old age.