Michigan’s population is notably older today than it was two decades ago, with baby boomers (born 1946–1964) comprising a large share of homeowners. The state’s median age rose from 36.9 in 2005 to about 40.3 by 2022, making Michigan one of the oldest states in the Midwest.
Roughly 18.7% of Michigan’s residents are now 65 or older, higher than the national average, and some counties skew even older. For example, in the popular retirement community of Leelanau County in northern Michigan, the median age is 55.2, and 22% of residents are 65+. This graying of Michigan is largely due to the aging of the baby boomers, a generation that is demographically dominant in the state.
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Homeownership among older Michiganders is high. Nationwide data show that Americans 55 and over (which includes all boomers by 2018) own the majority of homes – 54% of owner-occupied homes in 2023, up from 44% in 2008. Michigan reflects this trend, with boomers holding a substantial share of the state’s housing stock.
The homeownership rate for boomers is far above that of younger generations: nearly 80% of U.S. baby boomers own the home they live in, compared to only 55% of millennials. This means a huge portion of Michigan’s housing inventory is effectively controlled by the boomer generation as they enter their senior years.
The Aging-in-Place Phenomenon
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One defining characteristic of baby boomer housing behavior in 2018–2023 is the strong tendency to age in place. An overwhelming majority of older homeowners are choosing to remain in their existing homes rather than sell.
A 2024 Redfin survey found that 78% of Americans aged 60–78 plan to stay in their current home as they grow older. This was by far the most common plan among boomers, vastly outweighing other options like moving to a 55+ retirement community (which 20% were considering) or moving in with adult children (10%).
Financial Incentives to Stay Put
In Michigan, where many boomers have lived in their homes for decades, aging in place is a prevalent strategy – one that directly impacts the housing supply. When seniors stay put, fewer homes are listed for sale.
Many took advantage of ultra-low mortgage rates in the 2010s and even refinanced during the pandemic; they’re now reluctant to move and give up low house payments for a new mortgage at today’s higher rates. The financial incentives strongly favor staying put for many Michigan boomers – especially those who have paid off their mortgages or locked in 3% interest rates before 2022.
Michigan’s tax structure also rewards longevity in a home. Property tax assessments are capped to rise only modestly each year until a home is sold, meaning long-time owners often enjoy lower taxes relative to their property’s market value. This makes it financially beneficial for people to stay in their homes as they age.
Downsizing Trends
Not all boomers are staying in sprawling suburban houses indefinitely – some are downsizing or exploring other living arrangements, albeit at lower rates than expected. The likelihood of downsizing increases at the upper end of the age spectrum.
Home sellers aged 79+ (the “Silent Generation,” just older than boomers) are the most likely to downsize to smaller homes or condos when they move. As boomers age into their late 70s and 80s in the coming years, more will follow this pattern.
A portion of Michigan boomers have already opted for condominiums, senior apartments, or rentals that better fit their retirement lifestyle. In fact, some boomers are “loving the renter life,” exchanging homeownership for the flexibility and reduced maintenance of renting.
High-end rental communities in Metro Detroit have reported increased interest from downsizing empty nesters seeking luxury amenities without the burdens of upkeep. While still a minority trend, this willingness to rent indicates that traditional homeownership at all costs is no longer a given for every retiree.
Baby Boomers as Home Buyers: A Resurgent Force
Contrary to some expectations that seniors would fade from the home-buying market, Michigan’s baby boomers have been exceptionally active home buyers in recent years. In fact, boomers regained the top spot as the largest share of home buyers in the country by 2022–2023, a remarkable shift in generational trends.
According to the National Association of REALTORS®, buyers aged 60–78 (baby boomers) made up 42% of all U.S. home purchases in the last year, overtaking millennials (who fell to 29%). This represents a dramatic rise from the late 2010s, when millennials were often the leading buyer group.
Financial Advantages
One reason boomers have been so prominent as buyers is their financial strength and flexibility. They tend to have higher savings, more equity from previous homes, and less need for financing than younger buyers.
Nationwide, half of older baby boomer buyers (70s) and 40% of younger boomers (60s) paid all-cash for their home purchases, often beating out financed offers in bidding wars. In Michigan’s market, characterized by low inventory in 2020–2022, cash offers were especially appealing to sellers.
Boomers could tap proceeds from selling a long-time residence or use retirement savings to buy a retirement home outright. Meanwhile, over 90% of buyers under 45 needed a mortgage, putting younger families at a disadvantage when competing with cash-rich boomers.
Motivations and Preferences
The motivations behind boomer home purchases in 2018–2023 reflected their stage of life. Retirement and family considerations were top reasons. Many downsizing boomers bought homes to be closer to friends and family or to enjoy their retirement in a new location.
Within Michigan, younger boomers (60s) showed a preference for small towns, while older boomers (70s) gravitated more to suburban settings. This was evident in home sale patterns: boomers were active in Michigan’s idyllic small communities – from lakeshore towns to rural counties – not just the suburbs of Detroit.
Notably, boomers were often buying “right-sized” homes for retirement – not necessarily huge properties, but comfortable homes that are smaller than what they owned while raising families. Many explicitly desired a smaller home with less upkeep.
Michigan boomers in their 60s and 70s mostly sought two- to three-bedroom homes, single-story layouts, or condos that would be easier to manage as they age. Some even purchased homes with “senior-friendly” features or locations – for example, proximity to healthcare facilities or walkable downtowns became attractive, anticipating future needs.
Baby Boomers as Home Sellers: Low Inventory and High Equity
When baby boomers do decide to sell their homes, they dominate the supply side of the market. During 2018–2023, boomers consistently made up the largest share of home sellers of any generation.
By 2022–2023, over half of U.S. home sellers (about 53%) were baby boomers, a reflection of how heavily the market relied on older homeowners to list properties. In Michigan, where boomers own a huge portion of homes, this percentage is likely similar or higher.
Most boomer sellers were motivated by classic late-life reasons: their homes were too large or too difficult to maintain, or they wanted to relocate closer to family. Many had been in place for a long time (16-year tenure on average for older boomers), so they often had substantial equity gains.
The Delayed “Silver Tsunami”
However, relatively few boomers have been listing their homes compared to the vast number approaching retirement, contributing to a tight inventory crunch. Fears of a looming “silver tsunami” – a flood of houses hitting the market as the boomer generation ages – have so far not materialized in full.
Researchers from the Mortgage Bankers Association found that older Americans are holding onto their homes longer than expected, delaying the wave of boomer-owned homes entering the market. Life expectancy has risen, and many boomers are in good health into their 70s, allowing them to delay moves to nursing homes or assisted living.
The COVID-19 pandemic also shifted attitudes: rather than prompting mass sales, it reinforced many boomers’ decisions to stay put in a familiar home. Consequently, a recent analysis concluded that there will be no excess housing supply from older Americans in the next decade due to aging in place.
Future Housing Release
That said, the “silver tsunami” isn’t cancelled, only postponed. Demographic projections indicate that over 8 million homes will be released by older owners (nationally) by 2032, rising toward 9 million as the last boomers reach their 80s. Michigan’s share of that will be significant given its age profile.
Already, some impacts are visible in certain locales. In slower-growth rural Michigan markets, when an elderly homeowner passes away or moves to assisted living, their home hitting the market can noticeably lift local inventory.
We also see that the largest homes have become harder to sell in recent years as boomers begin offloading them. A study noted that since 2012, houses with four or more bedrooms (often boomer-owned family homes) have seen slower price growth and lower demand than smaller homes in the same areas.
Regional Differences in Boomer Housing Trends
Although statewide trends show boomers staying in place and competing for smaller homes, the patterns are not uniform across Michigan’s regions. There are notable urban-rural and north-south divides in how baby boomers approach housing.
Southeast Michigan
In Southeast Michigan, home to Metro Detroit and 50% of the state’s population, baby boomers are a major presence in the suburbs. Many of them bought houses in Oakland, Macomb, and Wayne counties during the 1970s–1990s and have remained ever since.
As a result, numerous Detroit-area suburbs have rapidly aging populations. For instance, in the inner-ring suburb of Grosse Pointe, over 21% of residents are 65 or older. Nearby Highland Park is about 22% seniors. These older suburbanites often live in spacious mid-century homes.
Instead of downsizing en masse, a significant number are aging in place in Metro Detroit’s suburbs, leading to a situation where entire neighborhoods consist of empty-nest boomers in larger houses. This contributes to the inventory shortage in family-friendly housing across metro Detroit.
A Redfin analysis found that empty-nest boomers hold at least 20% of large homes in every major U.S. metro, and well above that in many Midwest metros. Detroit fits this profile.
Northern Michigan and Rural Regions
In contrast, Northern Michigan and other rural regions have become magnets for retiree home buyers – and also exemplify the challenges of an aging population. The Grand Traverse Bay area (Traverse City and environs) is a prime example.
It combines natural beauty and recreation (lakefronts, golf, wineries) with small-town charm, making it the state’s most popular in-state retirement destination. Boomers from downstate often purchase second homes or plan their retirement around this region.
Consequently, counties like Grand Traverse, Leelanau, Charlevoix, and Emmet have some of Michigan’s highest median ages and fastest-growing senior populations. Grand Traverse County’s share of residents 65+ jumped from 14.8% in 2010 to 22% by 2022.
This influx (and aging-in-place of locals) drives specific housing trends: high demand for single-story homes, condos in town, and low-maintenance properties. It also inflates prices – Traverse City’s housing costs have risen sharply, and housing supply is constrained by the prevalence of seasonal homes.
Other Regional Variations
West Michigan and Southern Michigan regions show varied patterns. Mid-sized cities like Grand Rapids, Kalamazoo, and Lansing have somewhat younger demographics thanks to universities and diversified economies.
Boomers in those areas are more likely to downsize within the same community or move to nearby leisure locations (for example, some Grand Rapids retirees head for lakeshore towns like Holland or South Haven).
The “college town effect” is evident: places like East Lansing or Ann Arbor have relatively low proportions of seniors (under 10%) due to the concentration of students and younger professionals. Many local boomers there are retired academics or professionals who may stay due to the amenities (health care, cultural offerings) or downsize to condos locally.
The Upper Peninsula, more remote and historically losing young people, has an increasingly older population as well. Some U.P. communities see boomers holding properties with little competition from new buyers, which can depress prices or liquidity. On the other hand, certain amenity-rich U.P. areas (Marquette, Houghton) attract retirees for their beauty and simplicity.
Economic and Lifestyle Influences (2018–2023)
Several economic and societal factors between 2018 and 2023 profoundly influenced baby boomers’ housing decisions in Michigan. Home prices, interest rates, inflation, and the COVID-19 pandemic each played a role in shaping boomer behavior.
Rising Home Prices
Michigan’s housing market saw substantial price appreciation in this period, benefiting boomers as sellers but challenging them (and others) as buyers. From 2019 through 2022, home values in Michigan jumped sharply – by roughly 40% statewide since 2019.
The median home price in Michigan reached about $253,000 in 2024, up 4.7% from 2023 and continuing the upward trajectory. Many boomers who owned homes gained significant equity as prices climbed year after year.
This wealth effect made some feel financially secure enough to retire or invest in second properties. It also meant that those who chose to sell could command high prices; indeed, boomer sellers often received 100% of their asking price or more in the hot market of 2020–2021.
At the same time, higher prices made downsizing tricky – a smaller condo might cost as much as the large home a boomer sold, especially in desirable areas. Some boomers decided to cash out and relocate to lower-cost regions (out of state) to maximize retirement funds. Others held off selling entirely, worried that they wouldn’t find an affordable next home.
Mortgage Rate Swings
Perhaps the biggest economic shock to the housing market in this era was the rapid rise in mortgage interest rates. Boomers were uniquely positioned in how they felt this change.
In 2020–2021, rates hit historic lows (near 3% for a 30-year mortgage), which encouraged many boomers to refinance or even purchase vacation homes with cheap financing. However, by 2022, the Federal Reserve’s inflation-fighting measures drove rates above 7%, the highest in 20 years.
This had a chilling effect on many would-be buyers – but less so on boomers. Younger buyers depending on financing saw their buying power plummet with each rate hike, whereas a large share of boomer buyers do not need mortgages.
Boomers either sit on fixed low-rate loans (so they won’t sell and take a new high-rate loan), or they buy with cash. Thus, high rates locked many boomers in place (why trade a 3% mortgage for a 7% one?), exacerbating the inventory crunch.
Pandemic Lifestyle Shifts
The COVID-19 pandemic (2020–2021) altered housing preferences and needs across all ages, including boomers. Early in the pandemic, older adults faced higher health risks, leading some to hasten moves that they had been contemplating.
A number of boomers decided to relocate to be nearer to family for mutual support during the crisis, or to bring an elderly parent into their home. This contributed to a surge in multi-generational households.
At the same time, remote work became widespread for those still employed, allowing late-career boomers to work from a retirement destination or second home. Some took advantage by moving permanently to vacation homes in Michigan’s North (or staying there much longer each year), since they no longer needed to be in the office.
With travel and gatherings curtailed in 2020, homeowners focused on renovations and comforts. Boomers poured money into updating their houses with the mindset that they might stay indefinitely. This could further delay sales, as improved homes better meet aging owners’ needs.
By 2022–2023, vaccines and adaptation had reduced COVID’s immediate influence, but its imprint remained: the workforce had shrunk from early retirements, the housing market had fewer listings due to rate-lock and comfort in place, and preferences had shifted toward space and family connectivity.
Outlook: Beyond 2023
Looking ahead, Michigan’s housing market will continue to feel the influence of the baby boomer generation. All boomers will be at least 65 years old by 2030, entering the age where transitions to retirement housing accelerate.
Demographic projections show Michigan’s senior population swelling further: Southeast Michigan alone is expected to have 200,000 more people age 65+ by 2030. As the 2020s progress, more boomers will inevitably begin to downsize or pass on, gradually freeing up housing inventory.
While the feared “silver tsunami” has been delayed, it may yet arrive in a more incremental way – a continual trickle of listings that could relieve some housing pressure by the early 2030s. Economists at the Mortgage Bankers Association predict that the 2025–2035 period will finally bring a modest housing surplus nationally due to boomers exiting homeownership.
Michigan, with its faster-than-average aging, might see this shift slightly sooner. This could be welcome news for younger Michiganders struggling to find homes, as more listings gradually hit the market when boomers move out. However, the condition and location of those homes will matter; many boomer homes are older and large, so they may not match the preferences or budgets of first-time buyers without updates or price adjustments.
Preparing for an Aging Population
Communities across Michigan will need to expand services like in-home care, accessible transportation, and age-friendly housing options to accommodate those boomers who do age in place (the majority).
There is also a growing push for home design solutions (like home modifications or accessory dwelling units) so that seniors can live safely and near caregivers without giving up independence.
For those who do choose to move, Michigan could benefit if it retains retirees rather than losing them to Sun Belt states. The state’s relatively low cost of living and the emotional draw of staying near family are advantages that might keep more boomers at home.
Baby boomers have indelibly shaped Michigan’s housing market from 2018 to 2023, and their influence is far from over. They have driven up homeownership rates among seniors to record highs, sparked fierce competition for homes by leveraging their wealth, and simultaneously constrained supply by aging in place.
As we move beyond 2023, the gradual transition of boomers into the next life stage will be one of the most important factors determining Michigan’s housing inventory, affordability, and community character.
References
- Baby Boomers Regain Top Spot as Largest Share of Home Buyers – National Association of REALTORS®
- Boomer Boom: Six ways retirees are affecting the Grand Traverse region – Traverse City Business News
- Census data: Michigan is getting older – Axios
- Empty Nesters Own Twice As Many Large Homes As Millennials With Kids – Redfin
- Home Buyers and Sellers Generational Trends Report 2023 – National Association of REALTORS®
- Michigan Housing Market 2025: Prices and Trends – Zillow/Century Communities
- More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home As They Grow Older – Redfin
- Why Are Housing Prices High but New Construction Has Stalled? – SEMCOG
- Why Metro Detroit boomers won’t sell their big houses – Axios
- When Will Baby Boomers Relinquish Their Homes? – National Mortgage Professional
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