Arkansas, with its scenic Ozark mountains, affordable housing, and relaxed pace of life, presents a unique lens through which to view America’s largest generation in their retirement years. As Baby Boomers—born between 1946 and 1964—transition into their golden years, their housing decisions reveal much more than simple real estate preferences; they tell a story of economic resilience, family priorities, and shifting dreams.
The past fifteen years have witnessed dramatic economic upheavals: from the devastating housing crash of 2008 through a pandemic-fueled market frenzy and into today’s high-interest environment. Through it all, Boomers in The Natural State have adapted their housing strategies, sometimes predictably, often surprisingly.
Urban vs. Rural Migration Patterns Among Boomers in Arkansas
The past five years marked a significant shift in Baby Boomer migration patterns in Arkansas. Migration notably accelerated, particularly during the pandemic years of 2020-2022. While not moving in the “droves” seen in pre-recession generations, Arkansas registered meaningful gains in Boomer residents. Census data confirms this trend, showing Arkansas experienced a net in-migration of people 65 and older at approximately +0.4 per 1,000 seniors annually between 2015 and 2019. Most tellingly, the state gained about 1,076 more young seniors (ages 65-74) than it lost during this period.
The COVID-19 pandemic served as a migration catalyst, with many Boomers leaving larger cities for more affordable small and mid-sized communities. Arkansas benefited substantially from this urban exodus, attracting retirees from higher-cost states seeking better value and quality of life. This trend gained such momentum that by 2022, Arkansas was recognized as one of the top states for inbound movers by percentage.
Rural areas, particularly in the scenic Ozarks region, saw renewed interest from Boomer buyers seeking natural beauty and recreational amenities. Communities like Mountain Home, Bella Vista, and Hot Springs Village attracted retirees looking for affordable waterfront or mountain properties with established retirement infrastructures. Meanwhile, walkable neighborhoods in Little Rock and Fayetteville appealed to Boomers wanting to downsize while maintaining access to cultural amenities and healthcare.
2008-2017 Comparison
This recent migration activity stands in stark contrast to the previous decade, when Boomer movement stalled dramatically. During those years, Arkansas actually experienced a net decline in Boomer residents, with the Great Recession forcing many to delay retirement relocations. Rural retirement communities that had previously enjoyed robust growth saw annual expansion rates plummet to just +0.4% (2007-2012), down from +1.6% pre-recession. The 2018-2023 period represents not just a recovery but a significant reversal of these trends, with economic confidence and pandemic-driven lifestyle reassessments propelling Boomers to finally make their delayed moves to and within Arkansas.
Urban vs. Rural Preferences
Baby Boomers in Arkansas have historically skewed toward rural living, and this remained true throughout both periods. Over half of Arkansans over 65 live in rural areas – one of the highest such shares in the nation. Many rural counties in the Ozarks and other scenic areas have long attracted retirees. For example, Baxter and Marion counties in north-central Arkansas (home to retirement communities near lakes and mountains) had median ages above 52 by 2016, indicating a heavy concentration of older residents.
These areas continued to age as Boomers either stayed or moved in. By contrast, urban counties like Washington County (Northwest Arkansas) remained relatively young (median age ~32) due to influxes of younger people for jobs and college, even though places like Bella Vista in that region are popular with retirees. Nationwide, Boomers have shown a preference for smaller communities: they are more likely than younger generations to buy homes in small towns, and younger Boomers (in their late 50s/60s) are the most likely of any cohort to purchase in rural areas.
Housing Choices: Downsizing, Upsizing, or Staying Put
Aging In Place
A defining feature of Boomer housing behavior has been a strong tendency to stay put. Surveys in the 2010s found that the vast majority of Boomers approaching retirement wanted to remain in their current homes and communities. An AARP survey reported 87% of Boomers intended to “age in place” – staying near friends, family, and familiar surroundings rather than moving.
During 2008–2017, many Boomers hunkered down. Some delayed selling because home values had plummeted in the late-2000s housing crash, while others simply preferred to keep the family home. Homeownership retention rates for older Americans actually increased over the decade, meaning fewer seniors were exiting homeownership than expected. By the late 2010s, this trend continued: over half (54%) of Boomer homeowners in a 2023 survey said they never plan to sell their property, opting to stay for life. Only 15% expected to sell within five years. This “stay put” mentality has been consistent across both 2008–2017 and 2018–2023, contributing to lower housing turnover.
Downsizing Trends
While most Boomers stayed put, a significant minority chose to downsize during these periods – especially once economic recovery set in. Downsizing was relatively uncommon right after 2008 because selling at a loss was unattractive. But as home prices recovered in the mid-2010s, more Boomers could sell at a profit and downsize.
Nationally, about 21% of Boomers said they wanted a smaller house for retirement in a 2014 survey. The primary reasons were to reduce maintenance work and costs, and to cash out equity. The typical 65+ homeowner had roughly $200,000 in home equity, and many saw downsizing as a way to free up that wealth for other uses (travel, medical expenses, or bolstering retirement savings).
In Arkansas 2018–2023, downsizing became evident among Boomers who did move. According to the National Association of Realtors (NAR), older sellers (ages 69–77) were the most likely of any age group to have downsized into a smaller home when they sold. These were often “empty nesters” shedding extra space once children were gone. Statewide, Realtors noted plenty of longtime homeowners trading large houses for cozier, single-story homes or condos with less upkeep. Especially in suburban/urban areas like Little Rock or Bentonville, downsizing Boomers helped drive the condo and townhouse market.
Upsizing and “Right-Sizing”
A perhaps surprising trend in both time frames has been the number of Boomers who upsized or moved laterally to a similarly sized home, instead of downsizing. The narrative of all Boomers trading mansions for cottages is a myth – in reality their choices are diverse. A national Merrill Lynch/Age Wave study around 2014 found that nearly half of recent retiree movers (49%) did not downsize at all in their last move. In fact, 30% ended up in a larger home than before.
Similarly, a Del Webb survey of 50–60-year-olds found 22% planned to upsize in retirement (seeking more space or amenities), while 43% aimed to keep about the same space. This pattern became even more pronounced in 2018–2023 as Boomers’ financial situation improved. Some Boomers chose to “right-size” by moving to a home that better suited their lifestyle – which could mean smaller, but also could mean a newer or one-story home with the same square footage.
Others upsized to accommodate family, such as buying a bigger house with a separate suite for an elderly parent or extra bedrooms for visiting children and grandchildren. Upsizing is also tied to multi-generational living: a share of Boomers have adult children or other relatives moving in, so they seek larger houses. In Arkansas, upsizing has been observed among those who sold homes in expensive markets and relocated. A Californian Boomer moving to Arkansas, for instance, could buy a larger house with the proceeds from selling a smaller one in California.
Why So Many Stay Put
It’s worth noting why a majority of Boomers haven’t moved: many simply have no financial incentive to sell. By the 2010s, a large portion of Boomers either owned their homes free and clear or carried very low mortgage rates from refinancing during the ultra-low rate era. By 2020, nearly 78% of Boomer homeowners had paid off their mortgage or held significant equity. Those who still had loans often enjoyed interest rates under 4%.
In the 2021–2023 run-up, mortgage rates rose sharply, passing 7%, which made Boomers even more reluctant to give up a cheap loan on their current house for a new 7% loan on a downsized home. According to an industry analysis, empty-nest Boomers occupy nearly 3 in 10 large single-family homes in the U.S., twice the share held by millennials with kids. Many of these Boomers could downsize but choose not to because moving would not save much money – their current housing costs are low. In Arkansas, the effect is evident in mature suburbs: one can find whole streets of large 4-bedroom houses still occupied by original Boomer owners who bought them decades ago.
Key Motivations Behind Boomer Housing Decisions
Family and Lifestyle Considerations
The pull of family is perhaps the strongest motivator for Boomer moves. As Boomers entered retirement age, many desired to be closer to children and grandchildren or to aging parents. In NAR’s generational data, the primary reason Boomers purchased homes in recent years was to be near friends and family upon retiring.
This was a major theme in 2018–2023: numerous Arkansas Boomers moved to be closer to family members. For instance, some who had worked out of state chose to retire back in Arkansas to reunite with relatives. Conversely, a Boomer in Arkansas might relocate out of state to live near adult children. During 2008–2017, this motivation was present but often postponed – a Boomer nearing 65 in 2010 might have wanted to move near family but delayed the decision due to the recession. The desire to stay near family also explains why so many age in place: if family and social networks are local, Boomers prefer not to uproot.
Downsizing Motivations
For those Boomers who opted to downsize, key motivations included financial security, convenience, and health. Many cited reducing home maintenance burden (both physical work and cost) as a reason to seek a smaller, more manageable property. By selling a larger home, they could eliminate stairs, large yards, or extensive upkeep that becomes harder with age.
Financial considerations were significant: downsizing often frees up home equity. Boomers who were equity-rich but cash-flow poor saw selling a big house and buying a cheaper one as a way to generate retirement funds. This motivation grew stronger in 2018–2023 as home values hit record highs, giving Boomers more equity to cash out. Some Arkansas Boomers downsized specifically to lower their cost of living – for example, moving from a high-tax state or city to a lower-tax, affordable Arkansas town.
Upsizing and “Next Chapter” Motivations
For Boomers who upsized or moved to a comparable-size home, the motivations were distinct. One big factor was accommodating family – a reverse of the empty-nest downsizer. Some Boomers have adult children moving back home (the “boomerang” kids) or anticipate long-term visits from family.
Lifestyle enhancement was another driver: after decades of working, some Boomers reward themselves with a “dream home” in retirement. In the 2018–2023 boom, Boomers with substantial equity felt empowered to buy their ideal home (perhaps a vacation-like property on a lake, or a house with a hobby workshop). Arkansas has examples of this in areas like the Hot Springs region and Bella Vista, where retirees bought lakefront or golf-course homes that are actually as large as or larger than their previous houses.
Retirement Timing and Reluctance to Move
During 2008–2017, many Boomers delayed retirement and any associated move because of the economic downturn. Some kept working longer to shore up their savings, and moving was “off the table” during those uncertain years. By 2018–2023, with stock markets and home prices generally higher, Boomers felt more confident acting on their desires.
It’s notable that those who chose not to move often cite emotional and social reasons: they want to remain part of the communities they’ve lived in for so long. The comfort of the familiar can outweigh the lure of change. Boomers have deep roots, and leaving friends, churches, and routines behind is a major psychological barrier. In Arkansas’s small towns, this is palpable: a Boomer might keep the old family home because it’s tied to identity and community.
Impact of Economic Conditions
The housing market crash of 2008 left many Boomers with depressed home values right as they were entering their late 50s and 60s. This timing was unfortunate for those who might have wanted to sell and move for retirement – it is hard to downsize when you’re underwater on your mortgage or your home equity has shrunk.
Consequently, a lot of Boomers stayed put through the early 2010s to wait for a market rebound. Some even postponed retirement or kept a dual income longer than planned, hoping to recover losses in their 401(k)s and home equity. Migration data confirm that Boomer mobility plunged after 2008. Those who did move often couldn’t sell their previous homes for a good price, so the incentive to relocate was low.
Recovery and Housing Boom (2013–2021)
From roughly 2013 onward, home prices began rising again, and interest rates remained historically low. This combination eventually set the stage for increased Boomer activity. Low mortgage rates throughout the 2010s made it easier for Boomers who needed a new mortgage to consider moving.
More importantly, rising prices restored equity. By the late 2010s, many Boomers found that their homes were worth more than ever. This created an opportunity: they could sell at a high price (to eager Millennial or Gen X buyers) and use the windfall to fund their next housing choice. NAR’s data indicates Boomers became very active sellers once the market heated up – by 2021, Boomers made up 53% of home sellers, the largest share of any generation.
At the same time, plenty of Boomers were buying homes. In 2020–2022, interest rates hit rock-bottom (below 3% at one point for 30-year mortgages), which spurred a frenzy of home buying across the country. Boomers, especially wealthier ones, jumped into the market alongside younger buyers. One reason: they had built up substantial equity and savings, enabling them to compete (often paying cash or large down payments).
Pandemic Effects (2020–2023)
The COVID-19 pandemic initially froze the real estate market in early 2020, but it quickly ignited one of the hottest housing markets on record. For Boomers, there were a few effects. First, the pandemic induced some early retirements – people who decided to call it quits rather than continue working in uncertain times. Some of those early retirees accelerated their relocation plans, especially as remote work became common.
Second, interest rates were slashed to near 0%, making mortgages incredibly cheap through 2021. Third, the surge in home prices meant that affordability became a concern even for well-off Boomers. Nevertheless, many Boomers forged ahead, often competing with Millennials for the same suburban houses. By 2022, Boomers edged out Millennials as the top buying force in the U.S. housing market.
Rising Interest Rates and Inflation (2022–2023)
The latter part of the 2018–2023 period saw a sharp change: interest rates were hiked aggressively in 2022 to combat inflation. Mortgage rates shot up from ~3% to ~7% within a year. At the same time, inflation drove up the cost of nearly everything, including utilities, property insurance, and property taxes.
These changes had a cooling effect on Boomer mobility. Many Boomers who secured 2.5–3.5% mortgages in prior years now feel “locked-in” and are reluctant to buy again at higher rates. A national survey in late 2022 found 82% of homeowners felt “trapped” by their low-rate mortgages. Among Boomers, this sentiment is strong, as many have fixed incomes in retirement and want to keep housing costs predictable. High inflation also squeezed Boomers’ budgets, especially those on fixed incomes facing rising property taxes and insurance premiums.
Arkansas vs. National Trends
Migration and Relocation
Nationally, popular retirement destinations include states like Florida, Arizona, Texas, and the Carolinas. These states have consistently led in net gains of older adults. Arkansas, by contrast, has been a more modest magnet. It did attract Boomer retirees, but in far smaller numbers. One demographic analysis found that Arkansas had a net gain of only a few hundred senior migrants annually in the late 2010s.
In fact, Arkansas was listed among states that reversed from gaining Boomers to losing them around the Great Recession. In the 2018–2023 period, Arkansas likely improved its standing somewhat, especially relative to high-cost northern states. But it still doesn’t compete with Florida’s beaches or Arizona’s warm winters in sheer volume of Boomer influx. Instead, Arkansas tends to attract retirees from neighboring states or former Arkansans coming home.
Housing Affordability
Arkansas stands out nationally for its low cost of living, which is a selling point in attracting Boomers. The typical house price in Arkansas was about $176,000 in 2022, roughly half the national median home price at that time. Property taxes and insurance tend to be lower than in many other states. Additionally, Arkansas exempts certain retirement income from state taxes, which is a boon for retirees.
These factors mean that Boomers in Arkansas, on average, spend less on housing than their counterparts in many other states. The state ranked #3 in one “Best States to Retire 2022” list, specifically due to its second-lowest cost of living in the nation and very affordable healthcare.
Urban-Rural Distribution
Nationally, about 1 in 5 older Americans live in rural areas. In Arkansas, it’s more than 1 in 2. This stark difference means that the “typical” Boomer experience in Arkansas might be more rural than the U.S. average. Many national narratives about Boomers downsizing involve selling a suburban home and moving to a 55+ community or a condo in a walkable town center.
In Arkansas, you’re just as likely to hear about someone selling a farm or large rural property because they can no longer maintain it, or conversely, an urban retiree moving to a rural setting for peace and quiet. Boomers in Arkansas have a longstanding pattern of intra-state migration from the Delta or central Arkansas to the scenic Ozarks and Ouachitas. Places like Hot Springs Village, Bella Vista, Mountain Home, and Fairfield Bay have attracted Arkansas and Midwestern retirees for decades.
Regional Differences Within Arkansas
Northwest Arkansas (Urban/Suburban)
Northwest Arkansas (NWA), including Benton and Washington counties, is the state’s boom region economically. This area has attracted many younger families and professionals, resulting in a relatively low median age – about 32 in Washington County in 2016. During 2008–2017, NWA saw an influx of working-age people, which somewhat diluted the concentration of Boomers.
However, Bella Vista, in Benton County, was originally developed as a retirement community and still has a large retiree population. From 2018–2023, NWA started to get some attention as an appealing place to retire, thanks to its amenities plus low cost. Still, the majority of NWA’s growth is younger folks, and its housing market for Boomers has been tight – competition from younger buyers is strong.
Central Arkansas (Little Rock Metro)
Central Arkansas, including Little Rock and surrounding counties, has a mix of trends. Little Rock is an urban center with top-notch medical facilities – a draw for some older Arkansans who want to be near doctors. During 2008–2017, Little Rock’s Boomer population grew older in place, but some suburban flight happened as Boomers approaching retirement moved from the city to quieter outskirts.
From 2018–2023, the pattern includes Boomers downsizing from suburban homes into condos or townhouses in Little Rock’s more walkable neighborhoods. Saline County contains Hot Springs Village (a large gated retirement community) which has attracted thousands of Boomer retirees who want a leisure retirement lifestyle with golf courses, lakes, and a ready-made social scene.
Northern/Western Arkansas (Ozarks)
The Ozark Mountain region has long been a retirement haven. Counties like Baxter and Marion have high shares of seniors, with median ages over 52 by 2016. This region includes towns like Mountain Home, Harrison, and Eureka Springs. For decades, retirees from the Midwest have come to places like Mountain Home for the lake fishing and mild climate.
During 2008–2017, these areas saw slower growth due to the recession. From 2018–2023, as the economy improved, these regions likely saw a pickup in retiree migration again. Real estate agents in Mountain Home reported more out-of-state license plates house-hunting in recent years, as Boomers from places like Illinois or Missouri looked for affordable retirement homes.
Southern and Eastern Arkansas
These regions have generally been losing population for decades due to economic decline. Young people have left for better opportunities, and what’s left is an aging population. From 2008–2023, most of these areas saw net out-migration. Some Boomers here left upon retirement – often to move to Arkansas’s metropolitan or amenity-rich areas.
Those who stayed are aging in place by default. This has led to scenarios where Boomers in rural eastern Arkansas may have large family homes that they continue to occupy, but with no intention or easy avenue to sell if they wanted to. Unlike the Ozarks, these regions are not attracting outside retirees. For Boomers in declining regions, their home equity might be low because there’s weak market demand locally, encouraging staying put.
Market Impact and Future Outlook
The aging-in-place tendency of Boomers has contributed to a tighter housing inventory both nationally and in Arkansas. When over half of Boomer homeowners refuse to sell, it means fewer homes coming on the market for younger buyers. Indeed, the U.S. housing market in the late 2010s and early 2020s struggled with historically low supply, and Boomers staying put is one piece of that puzzle.
In Arkansas, this is felt in popular family neighborhoods: the expected turnover of a generation hasn’t fully happened yet. Large 4-bedroom homes owned by empty nesters aren’t being listed at the rate one might expect, forcing growing families to build new or bid up the limited existing stock.
An interesting development in 2021–2022 was Boomers leveraging their equity to out-buy Millennials. Nationally, Boomers comprised 39% of home buyers from mid-2021 to mid-2022, overtaking Millennials (28%) for the first time in nearly a decade. They also made up 53% of sellers in that period.
This shift occurred because Boomers had assets to weather the “roller coaster” market and could pay top dollar for homes, whereas younger buyers struggled with affordability and higher interest rates. In Arkansas, realtors reported instances of older out-of-state buyers paying cash above asking price for homes in desirable areas, pricing out local younger families.
Many Boomers view their home as their biggest asset and a pillar of financial stability. In one survey, 76% of Boomer homeowners said that owning their home is the primary reason for their financial security in retirement. And 86% said homeownership gives them a more stable home life.
This mindset explains a lot about their behavior – it’s not just a house, it’s peace of mind. That’s why losing a home to foreclosure in 2008 was so devastating for some, or why rising property taxes now cause such anxiety. It also explains the reluctance to sell: selling means converting that stable asset into cash, which some fear they might squander or outlive.
Healthcare and Housing Nexus
As Boomers age into their 70s and beyond, proximity to good healthcare becomes a decisive factor in housing. We already see Silent Generation homeowners choosing locations based on nearby medical facilities. Boomers in their late 70s are starting to prioritize this too.
In Arkansas, this could lead to secondary moves – e.g., a Boomer who retired to a lake cabin at 65 might decide at 75 to move closer to Little Rock or another city with a major hospital. This is a different kind of “home-buying trend,” one driven purely by health needs.
Future Outlook
As of 2023, the youngest Boomers are in their late 50s, the oldest in their late 70s. The next 5–10 years will see a growing number of Boomers entering true old age, which historically is when moves to downsize or to institutional settings peak. We can expect Boomer home sales to accelerate in the 2025–2035 period as health and mortality begin to compel transitions.
For Arkansas, this could mean more inventory in retirement regions and perhaps softer prices in places with lots of retiree homes. However, there’s also a huge cohort of Millennials who will be prime home-buying age and could snap up those homes. If housing in traditional retirement havens becomes too expensive, states like Arkansas might see a larger share of retirees than before.
References
- More U.S. Baby Boomers Staying Put – Population Reference Bureau
- Baby Boomers Edge Out Millennials as Top Buying Force – Realtor Magazine
- 2023 Home Buyers and Sellers Generational Trends Report – National Association of Realtors
- Empty Nesters Own Twice As Many Large Homes As Millennials With Kids – Redfin News
- Baby Boomer Housing Market 2024: More Than Half of Older Owners Never Plan to Sell – Clever Real Estate
- Arkansas, U.S. Baby Boomers Getting Older, Population Demographics Changing – Talk Business & Politics
- Older Population in Rural America – U.S. Census Bureau
- Domestic Migration of Older Americans: 2015–2019 – U.S. Census Bureau
- Baby Boomer Real Estate Trends: They Will Surprise You – CRES Insurance Blog
- The Silent Retirement Killer Draining Baby Boomer Savings – 24/7 Wall St.
