Baby Boomer Homebuying Trends in Alabama Over the Last 5 Years (2019–2025)

1. Current Housing Trends

Baby Boomers (generally ages 60–79 as of 2025) remain a powerful force in Alabama’s housing market. Most are long-time homeowners – nearly 80% of boomers own the home they live in – and many are staying put as they age.¹

This trend of “aging in place” has tightened housing supply, since fewer older owners are listing their homes. “More than three-quarters of older American homeowners plan to stay in their current home as they age,” a recent Redfin survey found.²

Still, a significant number are active in the market as buyers, typically preferring single-family houses. Detached single-family homes make up the vast majority of purchases among all age groups (over 80% nationally).³

Downsizing Trends

Unlike younger buyers seeking to “trade up,” older buyers often seek houses that are smaller or easier to maintain. According to the National Association of Realtors (NAR), buyers over 57 years old were the most likely to downsize to a smaller home.⁴

In fact, sellers aged 69–77 (Older Boomers) were the group most often moving to a home with less space. Recent Alabama real estate data aligns with this pattern: many empty-nest boomers selling large suburban houses are purchasing cozier homes or condos that better suit their Alabama retirement lifestyles.

Size Preferences Vary

Downsizing isn’t universal. Surveys show that only about 21% of boomers actually want a smaller house, while 53% are content with their current size and 26% even desire more space.⁵

Some Alabama boomers are “upsizing” or buying more upscale homes for retirement – for example, moving from an older farmhouse to a newly built home with luxury features. But most prioritize convenience and affordability over sheer size.

Community Living Options

One emerging trend is interest in 55+ communities and condos that offer maintenance-free living. About one in four Older Boomers (around retirement age) who buy a new home choose “senior-related” housing in age-restricted communities, opting for amenities and less upkeep.⁶

Alabama has seen a proliferation of these retirement developments (from gated active-adult neighborhoods to condo complexes with services), indicating solid demand.

Financial Advantage

Overall, homeownership remains far more popular than renting for Alabama’s boomers – the state’s high homeownership rate (about 69% vs ~64% nationally) reflects this inclination. Many retirees prefer the stability of owning, especially in Alabama where home prices and taxes are relatively low.

Notably, a large share of boomer buyers purchase homes with cash from years of equity: 51% of Older Boomers and 32% of Younger Boomers nationally paid all-cash for their most recent home.⁷ This cash-buying power gives boomers an edge in competitive bidding and underlines their overall financial dominance in the housing market.

2. Motivations and Influences

Aging in Place vs. Relocating

The majority of boomers are choosing to stay put in homes where they’ve lived for years. Familiarity, community ties, and the hassle/cost of moving all play a role.

Many have paid-off mortgages or ultra-low interest rates locked in, so there’s little financial incentive to sell. “Homeowners who secured low mortgage rates in previous years have been reluctant to sell, which has dampened supply,” explained Dr. David Hughes, an economist with the Alabama Association of REALTORS®.⁸

With over half of Alabama homeowners carrying sub-4% mortgage rates, a lot of Boomers are understandably hesitant to swap that for a new 7% loan.

Moreover, 87% of boomers nationally said they want to stay near family and friends in retirement.⁹ This desire to remain in community – alongside concerns about healthcare access and comfort – keeps many aging Alabamians in their current houses rather than moving.

Downsizing and “Rightsizing”

For the subset of boomers who do decide to move, a common motivation is to downsize or “right-size” for retirement. After the kids are grown, a large two-story house with a big yard can feel like too much.

By selling a high-maintenance family home, they can buy a smaller, single-level home that’s easier to manage – ideally with no stairs and a smaller yard.

Financially, downsizing often frees up home equity. “They want to reduce the time and money spent on maintenance, and pay off their mortgages,” one analysis noted of boomers’ mindset.¹⁰

Many Alabama boomers have substantial equity (on average around $200,000 for homeowners 65+ in the U.S.) that can be cashed out by moving to a cheaper home. This cash can fund travel, medical expenses or simply pad retirement savings.

Upsizing or Relocating for Lifestyle

Interestingly, not all boomers downsize. Some take the opportunity to upsize or change settings once they retire. A Merrill Lynch survey found 26% of boomers wanted a larger home in retirement.¹¹

Their reasons vary: some want more space for visiting family (e.g. extra rooms for grandkids or a hobby workshop), others buy their “dream home” since they finally have time to enjoy it.

For instance, an empty-nester couple from Birmingham might sell their modest house and move to a lakefront home with a view, essentially upgrading because they can now enjoy fishing and boating.

Another influence is proximity to family – a boomer might move closer to adult children and grandchildren. In cases where family has relocated (say, kids moved to Huntsville for jobs), retired parents may follow to be nearby.

Health and Convenience

Health considerations heavily influence boomer housing choices. Some move because their current home is no longer suitable for aging (too many stairs, too isolated from medical facilities).

They may seek one-story layouts or houses with accessibility features to accommodate mobility issues. Being near quality healthcare is crucial – retirees often choose locations with good hospitals or clinics.

Others relocate to be in an environment better suited to their health needs (warmer climate for arthritis, cleaner air, etc.). On the other hand, those in good health might stay in larger homes longer, whereas those facing medical issues might downsize sooner or move closer to caregiving family.

Financial Stability

Baby Boomers’ overall financial profile often gives them flexibility in housing. As a generation, they hold the most wealth – “They have the greatest wealth of any generation in American history. That wealth…and their willingness to spend it is driving a lot of these markets,” said John Allen, a Huntsville-based homebuilder and aging-in-place specialist.¹²

Many Alabama boomers enjoy stable retirement incomes (Social Security, pensions, and savings), and importantly, low debt. Few carry student loans or large balances into retirement.

This financial stability means those who want to buy a new home can often afford to, sometimes outright. It also means boomers who don’t need to move will stay put rather than downsell at a loss.

However, not everyone is flush – some boomers are on tighter budgets, especially with rising costs. For them, affordability is front-of-mind: they may downsize to cut expenses or even choose to rent if that makes more financial sense.

3. Regional Preferences

Alabama is now a net importer of baby boomers. In 2022 the state had a net gain of about +6,237 baby boomer movers (people in that age bracket moving in minus those leaving), one of the top 10 states nationally for boomer in-migration.¹³

This influx is concentrated in areas offering the right mix of climate, amenities, and affordability that retirees seek. Key regional hotspots include:

Coastal Alabama (Baldwin County & Gulf Coast)

The beaches and bay towns of lower Alabama have become retiree magnets. Baldwin County – home to Gulf Shores, Orange Beach, Foley, Daphne, Fairhope, and other Gulf Coast communities – is the standout.

It has led the state in net migration for years, fueled largely by incoming retirees. “Both retirees and younger families are moving to the county because it offers high quality of life, from great amenities to quality schools and economic opportunities,” said Viktoria Riiman, a University of Alabama analyst.¹⁴

For boomers, Baldwin County’s appeal is clear: a warm seaside climate, laid-back lifestyle, and reasonable cost of living. Popular spots like Foley (recently named the nation’s most cost-effective retirement city) boast that nearly one-third of residents are 65+, indicating a strong senior community.

Alabama towns such as Fairhope and Daphne on Mobile Bay are known for their charm, arts scene, and good healthcare access – all attractive to retirees. Meanwhile, Gulf Shores and Orange Beach offer the beach resort lifestyle for those who’ve dreamed of retiring near the ocean.

The Florida Effect

Coastal Alabama is also benefitting from an interesting trend: “priced-out Florida retirees” moving one state over. Florida’s booming popularity and rising costs have led some longtime Florida retirees to relocate to coastal Alabama, which has similar weather and scenery with less expense.¹⁵

“Many retirees are leaving Florida for Alabama, where the weather is just as warm and housing is more affordable,” notes Florida Atlantic University economist Ken H. Johnson, who attributes much of Baldwin County’s growth to ex-Floridians.¹⁶

“Lake and Country” Retreats

Beyond the beach, rural and small-town Alabama holds appeal for boomers seeking peace, quiet and natural beauty. The state’s countryside – from the foothills of the Appalachians in the north to the Black Belt prairies in the south – has many charming towns that are seeing influxes of retirees (albeit on a smaller scale).

For example, areas around Lake Martin and Lake Guntersville have attracted retirees who enjoy fishing, boating and a woodsy environment. Owning a lakefront cabin or a farmhouse on acreage is a retirement dream for some boomers, especially those coming from out-of-state urban centers.

These rural retirees often want “a slower pace and lower stress” in their golden years. Alabama offers plenty of off-the-beaten-path communities where living is inexpensive and laid-back.

Metro Areas and Suburbs

Interestingly, many Alabama boomers aren’t leaving cities at all – instead, they’re shifting within metro areas. Birmingham, Huntsville, Montgomery, and Mobile all have substantial boomer populations who are making moves.

Often, the pattern is moving from a suburban house to somewhere “closer in” or more manageable. In Birmingham, for instance, retirees might downsize from a house in a far-flung suburb to a condo or townhome in a walkable neighborhood like Mountain Brook or Hoover.

Some are moving downtown (e.g. lofts in redeveloped Birmingham buildings) to enjoy culture and restaurants within walking distance. Others remain in the suburbs but trade the big family home for a patio home in a 55+ subdivision.

Vestavia Hills, a Birmingham suburb, has become known for its large retiree contingent and even hosts a new resort-style senior community (Cahaba Ridge).

College Towns and Mid-Sized Cities

College towns are another niche draw: places like Auburn and Tuscaloosa see some alumni boomers returning in retirement for the sports, lifelong learning opportunities, and medical facilities.

Auburn in particular has popped up as a retirement hotspot in recent years, with new active-adult communities cropping up (such as The Legacy at Cary Creek).

Generally, amenity-rich mid-sized cities are popular for those who want lots to do. These urban and suburban boomers are often motivated by being close to top-notch hospitals, universities, airports, and other infrastructure, while still enjoying a lower cost of living than bigger metros outside Alabama.

4. Property Features and Amenities

When it comes to the home features Alabama’s boomers want, ease and comfort are the watchwords. After decades of homeownership, retirees know what they like – and what they don’t.

Single-Level Living

Perhaps the number one requirement is a single-story floor plan (or at least a primary bedroom on the ground floor). Many boomers are done with stairs.

Ranch-style homes, cottages, and condos with elevators are in high demand. Even within two-story homes, having the master suite on the main level is a big plus for those anticipating reduced mobility.

In newer developments geared toward 55+ buyers, virtually all models are one-story or have an elevator option. According to homebuilder surveys, boomers also appreciate “zero-step” entries – no big front stoops or steps in from the garage – so there’s no tripping hazard and wheelchair access is possible.¹⁷

As one industry expert put it, “Ordinary actions and simple chores must be accommodated… Elderly homeowners want zero-step entries into the home, single-floor living, wide hallways and doors that are wheelchair-friendly, lever-style knobs, and more accessible electrical switches. They [boomers] have…realized what kind of cost it takes [if you don’t future-proof the home].”¹⁸

Low Maintenance Features

After spending years mowing lawns and cleaning gutters, today’s retirees often seek homes that minimize maintenance. This means smaller yards (or yard care handled by an HOA), durable building materials, and modern systems that won’t need constant repairs.

Many boomers happily trade a large yard for a patio or courtyard – somewhere to garden a little or relax, but not too much to upkeep.

In Alabama, we see lots of patio-home communities marketing “maintenance-free living,” where a monthly fee covers landscaping and exterior upkeep. Even those who buy standalone houses often look for ones with brick exteriors, metal roofs, and energy-efficient windows – anything that lasts longer and reduces utility costs.

Simply put, boomers want to enjoy their home, not be burdened by it. A real estate agent in Montgomery quipped that many of her retiree clients “want to throw away their lawnmowers” when they move.

Modern Amenities & Tech

To age comfortably, many boomers value updated amenities – think modern kitchens, good insulation, efficient HVAC systems, etc. After all, they expect to spend a lot of time at home in retirement, so it had better be comfortable year-round.

Open-concept layouts (which facilitate entertaining and visibility) remain popular among this generation, as many like to host family gatherings. In Alabama, where outdoor living is feasible most of the year, features like screened porches or sunrooms are highly prized by boomers.

In terms of technology, older buyers are increasingly open to smart home tech that improves safety. Devices such as smart security systems, video doorbells, and medical alert systems can be particularly reassuring.

Smart-home tech is “playing a crucial role in enabling seniors to age in place safely,” according to Age Safe America.¹⁹

Accessibility and Comfort

Beyond the absence of stairs, other accessibility features are becoming more common. These include wider doorways and hallways (to accommodate walkers or wheelchairs), lever-style door handles (easier to use than round knobs for arthritic hands), rocker light switches, and bathrooms with grab bars or even curbless showers.

While some boomers will install these after moving in, many prefer homes that are already equipped or at least designed with retrofit in mind.

In Alabama’s newer 55+ communities, you’ll frequently see things like step-in showers, comfort-height toilets, and even blocking in walls for future grab bar installation – all standard or optional features recognizing the needs of older adults.

Climate comfort is another factor: good heating/cooling (and ceiling fans on those hot Alabama summer days) are must-haves. Home offices or hobby rooms are also popular features now, as many boomers plan to spend time on personal projects.

Size and Space Considerations

The average size of homes that boomers are buying has decreased slightly compared to what they previously owned, but not drastically. Many are seeking 2-3 bedroom homes – enough space to host family occasionally and pursue hobbies, but not so large as to be wasteful.

Nationally, one report noted that only the oldest seniors (those over 75) significantly downsized (from ~2,100 sq. ft. to 1,800 sq. ft. on average).²⁰

Boomers in their 60s tend to go from perhaps a 4-bedroom home to a 3-bedroom home. In Alabama, a typical downsizing might be from a 2,500 sq. ft suburban house to a 1,800 sq. ft one-level house.

They often insist on guest space (spare bedroom or bonus room) for when family visits, so very few go down to a one-bedroom scenario. Storage is also key – after accumulating possessions for decades, they want ample closets and maybe a shed or garage for tools and keepsakes.

Urban vs. Rural Preferences

There are some differences in what features are valued depending on location. Urban retirees (those moving into city condos or townhomes) might prioritize things like elevator access, walkability (a high “Walk Score”), and security (gated building or doorman).

They may be willing to sacrifice having a yard or extra square footage in exchange for proximity to restaurants, theaters, and hospitals. Many urban-minded boomers in Alabama are downsizing to condos in places like downtown Mobile or Birmingham’s Southside, where they can walk to the symphony or a café.

On the flip side, rural-minded boomers might care less about smart thermostats or granite counters, and more about land and privacy. Someone retiring to a cabin in Bankhead National Forest wants a nice view and perhaps a workshop for woodworking.

They value features like a screened porch, a fireplace, and a big carport for equipment. They might also prioritize having acreage for gardening or a detached RV garage for travel.

5. Market Data

Boomers have become a major force in Alabama’s real estate statistics over the past five years. Here’s a look at some recent market data related to Baby Boomer home transactions:

Share of Sales

Although Millennials are the largest group of homebuyers nationally, in 2023 Baby Boomers actually overtook Millennials in share of home purchases.²¹ This was partly due to boomers’ ability to pay cash and compete effectively for homes.

In Alabama, industry observers note that boomers (including both those relocating and those moving within the state) have comprised a sizable chunk of home sales in recent years – especially in certain markets.

For instance, local Realtors in Baldwin County estimate that retirees and pre-retirees account for around 1 in 3 home purchases in the coastal market.²²

Statewide, exact figures by generation are not formally tracked, but anecdotally, boomers are a key driver behind the stabilizing resale numbers even as younger buyers face affordability challenges.

Home Prices Paid

Baby Boomers tend to buy in a moderate price range, often lower than the state median price, as they’re usually not buying large “move-up” family homes.

Over the last 12 months in Alabama, many boomers have been purchasing homes in the $200,000 to $400,000 range. For example, in the popular Baldwin County retiree markets, the average home value in Foley is about $306,000, and in Fairhope around $463,000.²³

Many boomers from out-of-state find these prices a bargain compared to their previous locales. Even in metro areas like Birmingham or Huntsville, it’s common to see retiree buyers focusing on mid-priced homes: perhaps a $250K garden home in Montgomery or a $350K condo in Huntsville.

It’s worth noting that many boomers avoid overextending on price – they prefer to keep housing costs manageable in retirement.

Financing and Cash Sales

A distinctive aspect of boomer buying is the high incidence of cash transactions. As mentioned, about half of Older Boomer buyers nationally pay cash, and Alabama reflects this trend.²⁴

Realtors in retiree-heavy areas report a large proportion of their sales do not involve a mortgage – either the buyer had proceeds from a previous home or substantial savings.

For example, in one Gulf Shores 55+ community, an agent noted that almost all recent home sales to new residents were cash deals. When boomers do finance, they often make hefty down payments (20-50%), resulting in smaller loans that are easier to manage on retirement income.

This cash leverage not only makes their offers more competitive, but also signals their financial caution (no one wants a big mortgage in retirement). For the Alabama market, this means boomers are less sensitive to interest rate swings.

Property Size & Type

Homes being purchased by boomers in Alabama lately tend to be smaller and newer than the homes they sold. Based on NAR surveys, Older Boomers bought homes with a median of ~1,800 sq. ft. (the second-smallest of any generation, after the Silent Gen).²⁵

Many of these are 2-bed, 2-bath or 3-bed, 2-bath layouts. The median year of home purchased by boomers is often within the last 20 years, as they gravitate to newer builds.

In Alabama’s case, there’s a noticeable split: some boomers buy brand-new builds (particularly in planned retirement communities), while others buy existing homes that are, say, 10-30 years old but in good condition.

The age of home is an important factor – few boomers want a 100-year-old fixer-upper. As such, their demand has boosted Alabama’s new construction sector: several builders are explicitly targeting the 55+ market with new single-story homes and patio homes.

Neighborhood Choice

Recent data shows boomers have been shifting away from rural areas toward suburbs and small towns. The NAR’s generational report noted that Younger Boomers were actually the most likely of any generation to purchase in rural areas (perhaps seeking country peace), but many Older Boomers chose suburbs or small towns near family.²⁶

In Alabama, a lot of boomer buyers favor small towns and suburbs (over big-city downtowns or remote farms). Roughly half of boomer moves nationally are to suburbs, and we see that with Birmingham’s outer communities or Mobile’s Eastern Shore.

Neighborhood preferences also show up in distance moved: older buyers here typically move shorter distances. One national stat: buyers aged 69–77 moved a median of 49 miles from their previous home.²⁷

In Alabama, many moves are local – e.g., from one side of town to another – or regional (within 50-100 miles, perhaps from Atlanta to Lake Martin, or from rural Alabama to Montgomery). Only those relocating for retirement from out of state move very long distances.

6. Lifestyle and Community Factors

Lifestyle is a huge driver in boomers’ housing decisions. Many aren’t just buying a house – they’re choosing the community and activities that will define their retirement years.

i. Recreation and Hobbies

Boomers often pick locations that cater to their favorite pastimes. For golf lovers, Alabama is ideal – the state’s famed Robert Trent Jones Golf Trail and numerous golf communities draw retirees who want to spend their days on the links.

Communities like National Village in Opelika, built around RTJ golf courses, specifically target active retirees. “Retirement communities, such as Arizona’s Sun City or [others], offer just that – a resident can walk, bike or take a golf cart down to the shops, restaurants, gyms and pools,” notes one AARP report.²⁸

Beyond golf, fishing and boating attract boomers to lake and coastal towns. It’s common to see retirees with a bass boat relocating near Lake Guntersville or the Gulf Coast for easy water access.

Hiking and outdoor activities are another factor – north Alabama’s mountains and trails lure those who want an active, outdoorsy retirement of biking, hiking, or bird-watching.

ii. Amenity-Rich Communities

There’s a growing interest in planned retirement communities that offer a suite of amenities and social programs. These are not “nursing homes” but rather active adult communities where residents typically must be 55 or older.

In Alabama, examples include The Legacy at Cary Creek in Auburn, The Grove in Foley, and River Highlands in Hoover. These communities often feature a clubhouse, swimming pool, fitness center, and organized clubs or outings.

“Modern retirement communities offer luxury independent living, events and activities, fine dining, access to pools, fitness centers, walking trails, and more, all without home maintenance,” notes a local retirement living guide.²⁹

The social aspect is key – many boomers like the idea of being surrounded by neighbors at a similar life stage, with plenty of opportunities to make new friends.

iii. Walkability and Convenience

After years of commuting and car dependency, many boomers express a desire for more walkable, convenient lifestyles. There’s a bit of nostalgia at play – “many baby boomers are seeking out the walkable neighborhoods of their youth,” one survey found.³⁰

In Alabama, this translates to retirees favoring small towns with quaint, walkable downtowns (like Fairhope or Florence), or even urban districts where you can walk to the grocery store or pharmacy.

“We spent 40 years driving everywhere in suburbia – now we’d like to walk to a café,” is a common sentiment. Communities that are golf-cart friendly also appeal (several Alabama retirement communities allow or even encourage golf carts as a secondary mode of transport around town).

Additionally, proximity to shopping, dining, and healthcare – essentially “10-minute living” – is a lifestyle perk boomers seek. They appreciate having a Publix, a few restaurants, and a clinic within a short drive or walk.

iv. Cultural and Educational Opportunities

Retirement doesn’t mean slowing down for many boomers – they’re interested in lifelong learning, arts, and entertainment. As such, places that offer cultural richness get a nod.

College towns like Auburn and Tuscaloosa see retirees taking advantage of university amenities – from attending SEC football games to enrolling in Osher Lifelong Learning Institute (OLLI) courses.

Huntsville’s boomers enjoy the symphony, botanical garden, and space center events. Birmingham offers theater, museums, and a top-notch culinary scene that appeal to those who want an engaging urban retirement.

Some retirees even choose to live near universities to take classes or enjoy the campus energy. Auburn has a known community of retired faculty and alumni who’ve settled there. For the musically inclined, Muscle Shoals in north Alabama, with its rich music history, has attracted a few retiree musicians.

Meanwhile, Montgomery’s history and arts (e.g. the Alabama Shakespeare Festival) draw culturally minded seniors. The key is that boomers are looking for more than just a house – they want a community that offers mental stimulation and chances to continue personal growth.

v. Community Engagement

Service and community involvement remain important to many boomers, so they often choose locations where they can be active citizens. Some intentionally retire in the towns they love and proceed to join community boards, volunteer at churches or schools, or even enter local politics.

It’s not uncommon for a retiring executive from Atlanta to move to small-town Alabama and end up volunteering with Habitat for Humanity or serving on a town council. So an area’s volunteer infrastructure (nonprofits, churches, clubs) can influence boomer moves.

For instance, a retiree who wants to work with animals might move to a community that has an active Humane Society or animal rescue ranch. One who wants to mentor might settle near a school or a community college where they can tutor.

Alabama’s friendly, community-oriented culture actually works in its favor here – newcomers often find it easy to get involved.

vi. Popular Retirement Communities

To highlight a few top options catering to boomers in Alabama: The Legacy at Cary Creek (Auburn) is a new 55+ development featuring custom single-level homes with stair-free entries and open layouts designed for active seniors.³¹

It offers walking trails and a clubhouse, capitalizing on being near the Auburn University campus. On the coast, Sea Pines at Bon Secour (Foley) is a sought-after 55+ community that provides an “enriching environment” and even on-site medical services for peace of mind.³²

In the Birmingham area, Cahaba Ridge in Vestavia Hills is an upscale independent living community with resort-style dining and activities. Oyster Bay Village in Gulf Shores is another popular active adult enclave – it’s a short drive from the beach and offers a communal lifestyle for its residents.

And in Huntsville, developments like The Villas at Jones Valley or The Villas at Research Park are tailored to seniors who want to live in quiet, accessible neighborhoods not far from shopping and hospitals.³³

These communities typically have features like fitness centers, organized outings, transportation services, and emergency call systems, combining lifestyle and safety nets. They’re essentially built with boomer preferences in mind: private homes or apartments with shared amenities and a social calendar.

Many boomers in Alabama are embracing these communities as a way to downsize without loneliness or boredom. As one new resident in Foley’s Grove community described, “We moved in this week and have found everyone we have met to be warm, friendly and fun!”³⁴ The camaraderie and activities keep them young at heart.

vii. Family and Faith

Lifestyle is also about being close to loved ones. We mentioned proximity to family under motivations – that is indeed a lifestyle choice too (e.g. retiring to become an active grandparent).

Many boomers arrange their housing to enable visits from grandkids – like an extra bedroom/playroom or a pool. For some, being part of a close-knit church community is crucial in retirement.

They might choose their new home because it’s near a particular church or synagogue where they feel at home. This often ties into returning to one’s hometown or region – e.g. a boomer might move back to small-town Alabama where they grew up, specifically because they want that familiar community and church family around them.

The social and spiritual support is a key factor in their housing decision. Alabama’s strong community values mean that many places across the state can fulfill this need, from rural churches to suburban volunteer clubs.

7. Future Outlook

 

Looking ahead, the next five years (2025–2030) will see Baby Boomer housing trends in Alabama evolve further, but not radically depart from current patterns. Here are some projections and factors likely to shape the future:

Gradual “Silver Tsunami,” Not a Flood

As the tail end of the Boomer generation (those born 1960-1964) reaches retirement age, Alabama will have an even larger senior population. However, don’t expect a sudden glut of boomer-owned homes hitting the market all at once.

Experts predict a steady trickle rather than a tidal wave. “Demographics are never a tsunami. The baby boomer generation is almost two decades of births. They’re going to take about two decades to work through [their housing transitions],” noted Mark Fleming, chief economist at First American.³⁵

In other words, from now through the 2030s, we’ll see increasing numbers of boomers downsizing or moving each year, but spread out over time.

In the near-term (next 5 years), many younger boomers (in their 60s) will likely continue to stay put, especially if interest rates remain high – they won’t give up low mortgage rates easily.

In-migration and Population Shifts

Alabama should remain a net gainer of retirees moving in. With the massive boomer cohort nationally, even a small percentage choosing Alabama can significantly boost the state’s senior population.

Baldwin County and other hotspot regions will likely see sustained growth. If anything, the trend might accelerate if Florida, Arizona, and other traditional retirement states become too pricey or crowded. Alabama offers a quieter, cheaper alternative that could be more broadly discovered.

We might see more publicity around Alabama’s retirement appeal (for example, Foley’s recent #1 ranking for cost-effective retirement could draw attention).³⁶ The state may climb further up lists of top retirement destinations.

Regionally, north Alabama’s profile might rise as boomers from the Midwest seek mild climates without extreme coastal heat – the Tennessee Valley could attract those who find Florida too humid but like Alabama’s lower taxes compared to Tennessee.

Housing Market Impact

Boomers will continue to influence Alabama’s housing market dynamics. In the next few years, if interest rates stabilize or drop a bit (say from ~7% to ~5%), we could see a modest uptick in boomer listings – some who were holding off might finally sell and downsize once they feel they’re not “losing” a super-low rate.

This would inject some much-needed inventory into the market, especially larger family homes. Younger buyers might finally get more options as boomers let go of those 4-bedroom houses.

However, any increase in listings could be offset by strong boomer buyer demand for the mid-size homes they want. Builders are likely to respond by constructing more of those one-story homes and cottages.

We anticipate more Alabama builders pivoting to senior-friendly home designs (if they haven’t already) to cater to the growing retiree buyer segment. As one homebuilder mentioned, “The era for homebuilders to take effect is now. The approaching increase in older population calls for swift action to produce affordable housing [and] enhance accessibility.”³⁷

Senior Housing & Healthcare Developments

We will likely see growth in senior-specific housing options in Alabama. This includes not just 55+ active adult communities (which are expanding), but also more continuing care retirement communities (CCRCs) and assisted living facilities to serve the aging boomers later in life.

Forward-looking developers are already planning for the wave when boomers hit their 80s and need care. For instance, additional phases in communities like River Highlands (Hoover) include assisted living alongside independent living.

Healthcare providers in Alabama are also bracing for an older population: expect new clinics, expanded geriatric services, and telemedicine to become more prevalent, especially in areas with heavy retiree growth.

Telehealth in particular can be a game-changer for rural retirees, letting them stay on the farm a bit longer while still getting medical consults.

Renovation Boom

Another future trend is a possible renovation boom as boomers retrofit their existing homes for aging. Many who choose not to move will invest in making their houses senior-friendly – installing ramps, renovating bathrooms, widening doors.

A Harvard study on housing America’s older adults suggests a surge in remodeling for accessibility is on the horizon.³⁸

Alabama’s remodeling contractors may get busy with projects like converting tub-shower combos to walk-in showers, or building mother-in-law suites for multi-generational living.

This trend keeps boomers in place but also improves the housing stock for the next generation. Additionally, multi-generational living could tick up – some boomers may move in with their adult children or vice versa.

Economic Factors

Local economic conditions will influence boomer trends too. If Alabama’s economy remains stable with low taxes, it will continue to attract retirees.

Any negative swings (like pension fund issues, or spikes in insurance costs due to hurricanes) could temper it. But generally, Alabama’s cost advantage is expected to persist.

Also, if the state invests in making itself more retiree-friendly (improving healthcare infrastructure, marketing its tourism and retirement benefits, etc.), it could significantly boost boomer migration.

On the other hand, climate risks (heat, storms) and how they’re managed will matter – a bad hurricane hitting Baldwin County, for instance, could slow the coastal retirement surge if insurance rates jump or folks get skittish.

Lifestyle Evolution

The concept of “retirement” is changing; many boomers plan to work part-time, start second careers, or remain very active. Alabama may benefit if it creates opportunities for these energetic seniors – e.g. part-time consulting jobs in Huntsville’s industries for retired engineers, or volunteer programs statewide.

The more enriched and engaged retirees can be, the more attractive the state becomes. By 2030, we might see “boomer communities” not just focused on leisure but also on entrepreneurship or volunteering.

Perhaps a trend of boomers starting small businesses in their retirement towns (we already see some opening B&Bs, craft shops, or consulting firms). This could revitalize some small communities.

All told, Alabama’s housing outlook for boomers is bright. The state is poised to continue as a retirement haven due to its affordability and quality of life, provided it adapts to meet boomer needs.

In the next five years, expect incremental changes: more inventory tailored to seniors, slowly increasing moves by the oldest boomers, and new faces from out of state joining Alabama’s communities.

Housing professionals are optimistic but cautious – they don’t foresee a dramatic market upheaval, but rather a shifting equilibrium. “The silver tsunami’s transformative potential has not yet materialized in any meaningful way, and few expect it to anytime soon,” as HousingWire observed.³⁹

Instead, Alabama will ride a long, rolling wave of boomer housing transitions. By 2030, the state will likely be decidedly older, with entire neighborhoods and towns transformed by their retiree populations.

Planning now – by building appropriate housing and expanding services – will ensure that this generational shift is a boon for Alabama, bringing economic growth (think construction and healthcare jobs) and vibrant multigenerational communities, rather than a strain.

References

1. Alabama Association of Realtors – “Alabama’s 2024 Housing Market: Challenges, Shifting Trends, & Signs of Hope.” Feb 7, 2025. Alabama home sales dropped 18% in 2024 due to high mortgage rates, and over half of homeowners have sub-4% mortgages, making them reluctant to sell.
2. Redfin News – “More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home as They Grow Older.” Mar 2024. 78% of older homeowners plan to remain in their current home as they age, far more than any other option.
3. National Association of Realtors – 2023 Home Buyers and Sellers Generational Trends Report. “Buyers 57 and older were more likely to downsize… Baby Boomers and the Silent Generation are selling to move closer to friends and family or because their home is too large.”
4. National Association of Realtors – 2023 Home Buyers and Sellers Generational Trends Report. Boomers made up 52% of home sellers (30% Younger Boomers, 22% Older Boomers) in 2023.
5. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” 87% of boomers want to stay in their homes upon retirement (AARP), but among those open to moving, only 21% want a smaller house while 26% want a larger one (Trulia survey).
6. National Association of Realtors – Home Buyers and Sellers Generational Trends. About one in four Older Boomers who buy a new home choose “senior-related” housing in age-restricted communities.
7. NAR Economist’s Outlook – “Millennials Still Underperforming Amid Homeownership Gains.” Aug 2, 2023. 51% of older boomers and 32% of younger boomers paid all cash for their most recent purchase, giving them an edge in bidding wars.
8. Alabama Association of Realtors – “Alabama’s 2024 Housing Market: Challenges, Shifting Trends, & Signs of Hope.” Feb 7, 2025. “Homeowners who secured low mortgage rates in previous years have been reluctant to sell, which has dampened supply,” explained Dr. David Hughes.
9. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” 87% of boomers nationally said they want to stay near family and friends in retirement.
10. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” “They want to reduce the time and money spent on maintenance, and pay off their mortgages,” one analysis noted of boomers’ mindset.
11. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” A Merrill Lynch survey found 26% of boomers wanted a larger home in retirement.
12. ACRE – “Aging population could have impact on real estate market.” “They have the greatest wealth of any generation in American history. That wealth…and their willingness to spend it is driving a lot of these markets,” said John Allen, a Huntsville-based homebuilder.
13. Becker’s (via StorageCafe) – “Top states where baby boomers are moving.” Jan 11, 2024. Alabama had the 9th highest net migration of baby boomers in 2022. Net +6,237 boomers moved into AL.
14. University of Alabama News – “Baldwin County Leads in Net Migration.” Mar 27, 2018. “Both retirees and younger families are moving to [Baldwin County] because it offers high quality of life, from great amenities to quality schools and great economic opportunities,” said Viktoria Riiman.
15. PayProp Blog – “Priced-out Florida retirees are moving to Alabama.” Jun 27, 2023. Many retirees are leaving high-cost Florida for Alabama’s equally warm but more affordable shores.
16. PayProp Blog – “Priced-out Florida retirees are moving to Alabama.” Jun 27, 2023. “Many retirees are leaving Florida for Alabama, where the weather is just as warm and housing is more affordable,” notes Florida Atlantic University economist Ken H. Johnson.
17. ACRE (UA Culverhouse) – “The Impact of Baby Boomers on the Housing Market.” May 17, 2019. According to homebuilder surveys, boomers appreciate “zero-step” entries – no big front stoops or steps in from the garage.
18. ACRE (UA Culverhouse) – “The Impact of Baby Boomers on the Housing Market.” May 17, 2019. “Ordinary actions and simple chores must be accommodated… Elderly homeowners want zero-step entries into the home, single-floor living, wide hallways and doors that are wheelchair-friendly.”
19. Age Safe America – “Smart Home Technologies for Aging in Place.” Smart-home tech is “playing a crucial role in enabling seniors to age in place safely.”
20. Mansion Global – “Millennials Make Up Lion’s Share of U.S. Home Buyers” Only the oldest buyers (Silent Gen) were moving to significantly smaller homes (median size down from 2,100 to 1,800 sq ft).
21. NAR Economist’s Outlook – “Millennials Still Underperforming Amid Homeownership Gains.” Aug 2, 2023. In 2022, Baby Boomers surpassed Millennials as the largest share of home buyers.
22. PayProp Blog – “Priced-out Florida retirees are moving to Alabama.” Jun 27, 2023. Local Realtors in Baldwin County estimate that retirees and pre-retirees account for around 1 in 3 home purchases in the coastal market.
23. Zillow – “Foley AL Single Family Homes For Sale.” The average home value in Foley is about $306,000, and in Fairhope around $463,000.
24. NAR Economist’s Outlook – “Millennials Still Underperforming Amid Homeownership Gains.” Aug 2, 2023. About half of Older Boomer buyers nationally pay cash.
25. National Association of Realtors – 2024 Home Buyers and Sellers Generational Trends Report. Older Boomers bought homes with a median of ~1,800 sq. ft. (the second-smallest of any generation, after the Silent Gen).
26. Mansion Global – “Millennials Make Up Lion’s Share of U.S. Home Buyers” Many Older Boomers chose suburbs or small towns near family.
27. National Association of Realtors – 2024 Home Buyers and Sellers Generational Trends Report. Buyers aged 69–77 moved a median of 49 miles from their previous home.
28. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” “Retirement communities, such as Arizona’s Sun City or [others], offer just that – a resident can walk, bike or take a golf cart down to the shops, restaurants, gyms and pools,” notes one AARP report.
29. GoLambertTeam Blog – “Retirement Living in Alabama.” “Modern retirement communities offer luxury independent living, events and activities, fine dining, access to pools, fitness centers, walking trails, and more, all without home maintenance.”
30. CRES Insurance – “Baby Boomer Real Estate Trends: They Will Surprise You.” “Many baby boomers are seeking out the walkable neighborhoods of their youth,” one survey found.
31. Seniorly – “15 Best Active Adult Communities (55+) in Alabama.” The Legacy at Cary Creek in Auburn – large homes with stair-less entry and accessibility in a vibrant neighborhood.
32. Seniorly – “15 Best Active Adult Communities (55+) in Alabama.” Sea Pines at Bon Secour in Foley – a 55+ community with a supportive atmosphere and focus on exceptional care/medical services for residents.
33. Seniorly – “15 Best Active Adult Communities (55+) in Alabama.” The Villas at Jones Valley or The Villas at Research Park are tailored to seniors who want to live in quiet, accessible neighborhoods not far from shopping and hospitals.
34. The Foley Grove – Resident Testimonials. Aug 2024. “We moved in this week and have found everyone we have met to be warm, friendly and fun!”
35. HousingWire via Geneva Financial – “Will a Silver Tsunami change the 2024 housing market?” Oct 2023. “Demographics are never a tsunami. The baby boomer generation is almost two decades of births. They’re going to take about two decades to work through [their housing transitions],” noted Mark Fleming, chief economist at First American.
36. Foley City News – “Foley named nation’s most cost-effective retirement city.” Feb 23, 2024. A GOBankingRates study ranked Foley, AL the #1 most cost-effective place to retire in the U.S.
37. ACRE (UA Culverhouse) – “The Impact of Baby Boomers on the Housing Market.” May 17, 2019. “The era for homebuilders to take effect is now. The approaching increase in older population calls for swift action to produce affordable housing [and] enhance accessibility.”
38. ACRE (UA Culverhouse) – “The Impact of Baby Boomers on the Housing Market.” May 17, 2019. A Harvard study on housing America’s older adults suggests a surge in remodeling for accessibility is on the horizon.
39. HousingWire via Geneva Financial – “Will a Silver Tsunami change the 2024 housing market?” Oct 2023. “The silver tsunami’s transformative potential has not yet materialized in any meaningful way, and few expect it to anytime soon,” as HousingWire observed.