The Top 2 Reasons Baby Boomers Decide To Sell Their Home In Retirement

Baby boomers have been the driving force of the nation's economy for the longest time. Capitalizing on their sheer numbers (more than 76 million babies were born between 1946 and 1964), an allegedly materialistic outlook, and some favorable economic conditions during their adulthood, boomers have managed to amass an enviable war chest. In fact, boomers are the wealthiest of all the generations. We are almost at a point where other generations, like the millennials, are accusing boomers of holding onto their assets for way too long, eagerly awaiting the great wealth transfer, especially when it comes to homes. And although a large portion of the boomers are in no hurry to let go of their homes, the ones that decide on selling it, do it primarily for one of the two reasons. They either want to get closer to family and relatives post-retirement or they want to downsize to a smaller home, according to a 2025 National Association of Realtors report.

Even though boomers are motivated by factors like being near loved ones or having smaller homes, they have largely been able to make the move because of their extremely strong financial position. The equity they have built up from decades of homeownership and increased home prices have allowed them the privilege to claim the biggest chunk of the homes in 2025.

Having said that, a lot of boomers, particularly those who want to downsize, also feel constrained by the current financial situation. Selling their large home to buy a smaller one for a significantly higher price, does not seem like a financially sound move to them. Similarly, despite the large percentage of mortgage-free American boomers, the ones that are paying off debt do not want to shift to higher rates.

According to a 2025 poll from Clever Offers, 61% of the baby boomer population have confessed their desire to age in place and plan to never sell their homes. Out of the percentage of boomers that are selling their homes though, a sizable portion are doing it to get closer to family, according to the 2025 report from the National Association of Realtors. Boomers want the emotional support system of their loved ones and crave to see more of their grandchildren.

In an effort to live near their grandkids, a trend popularly known as "baby-chasing," a lot of the boomers have also been moving south if their younger relatives live there, particularly to states like Florida, Texas, and the Carolinas. The fact that these states also boast of excellent warm climates and mild winters is another value-add for the boomers. The love for community and like-minded people is also a big driver for this generation, driving them towards towns with festivals and shopping.

Having said that, a significant part of the boomer demographic has also relocated to be closer to their aging parents, per KFF Health News. These boomers are often in their 60s and 70s, while their parents are in their 80s and 90s. Obviously, this is one of the consequences of increased life expectancy in the modern era, where retirees find themselves aging alongside their parents and having to curtail a bit of their freedom to care for them.

One of the other major motivations behind boomers selling their home is their desire to move to a smaller home. According to the report from the National Association of Realtors, boomers are also highly motivated to move into smaller towns and suburbs. As they live out their golden years, boomers have some valid reasons for wanting to make this shift. In many situations, they are living in what's referred to as a housing mismatch, where a large share of the boomers, with families comprising only one or two members, are stuck in homes that are way too big for them. According to a study by Redfin News, the number of boomers who own a three-bedroom or larger house is twice as the number of millennials. "It's just too much house at this point," a 73-year-old homeowner from the North Hills of Pittsburgh points out, per NPR.

Apart from the extra space, bigger houses also pose some health concerns for the boomers. Multi-storied houses include stairs, which can lead to falls. Considering that falls are among the prominent causes of injury-related deaths among seniors (65 years or older), it seems like the boomers are once again being highly pragmatic in their decision-making.

Having said that, there is also evidence that a lot of boomers are not downsizing by much either. Jessica Lautz, the deputy chief economist at the National Realtor Association has told Business Insider that raw data tells a completely different story than the ones narrated by the boomers themselves. "They suggest that they're moving for downsizing, but when we look at the data, they don't by much," Lautz mentions. Lautz has suggested that boomers are simply avoiding remodeling costs and going for ease of customization in new homes, per National Mortgage Professional in 2023.