Baby Boomer Home-Buying Trends in Illinois (2018–2023)

Illinois baby boomers aren’t behaving as housing experts once predicted. Rather than emptying suburban neighborhoods for downtown condos or Florida retreats, most are staying put in their family homes. Those who do move often downsize within the same communities where they’ve spent decades. This stability has significant consequences for Illinois’ housing market, particularly in Chicago’s suburbs where boomers own over 35% of homes despite making up less than 20% of the population.

The patterns emerging since 2018 show a generation redefining retirement on their own terms. Rising home values have increased their equity but simultaneously made downsizing less financially advantageous, especially as mortgage rates spiked after 2021. Strong community ties, financial calculations, and the challenges of COVID-19 have all reinforced the tendency to age in place, pushing most significant housing transitions further into the future than analysts once expected.

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Urban vs. Suburban Moves and Downsizing Trends

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Baby boomers in Illinois have exhibited varied housing behaviors from 2018 to 2023, with many staying put in long-time homes while others downsized or relocated. Nationally, boomers surpassed millennials as the largest home-buying cohort, making up 39% of buyers by 2022.

However, a significant share are not entering the urban condo market en masse; instead, surveys show boomers often prefer suburban living in single-family homes. In fact, a national homebuyer survey found that the baby boom generation overwhelmingly favors suburban neighborhoods of detached houses (nearly 80% even prefer cul-de-sacs over through streets).

This holds true in Illinois, where boomers have been driving suburban market activity – open houses in Chicagoland suburbs are packed with boomer buyers competing, often with cash from decades of equity. Overall, the trend leans toward suburban over urban moves for many Illinois boomers, especially those seeking more space or familiarity.

Downsizing Reality

Despite the suburban inclination, some boomers did opt for downsizing. Those who chose to move were likely to purchase smaller, more manageable homes. National data confirms buyers aged 57 and up tended to downsize, whereas younger buyers upsized. Roughly two-thirds of boomers planning a move say they will likely seek a smaller, less costly home.

In Illinois, this often means moving from a large family house in the suburbs to a townhouse or condo (sometimes in a walkable suburban town center) to reduce maintenance.

The Aging in Place Phenomenon

Even so, downsizing isn’t universal—aging in place remains common. A 2023 survey found 54% of baby boomer homeowners nationwide plan to remain in their current homes for the rest of their lives. Similarly, an AARP Illinois survey reported over three-quarters of adults 50+ want to stay in their homes or communities as they age.

This suggests that, outside of those actively downsizing, a majority are staying put rather than relocating to new urban condos or retirement communities.

Motivations: Finances, Lifestyle, and Health

Baby boomers working out their financials — Shutterstock

The decision to move, downsize, or stay is often driven by a mix of financial considerations, lifestyle preferences, and health needs.

Financial Considerations

On the financial front, affordability and cost of living have been pivotal. Illinois baby boomers on fixed incomes are sensitive to rising expenses like property taxes and utilities, which can strain their budgets. The fear of outliving retirement savings – heightened by economic uncertainty – has made affordability crucial for this group.

Many boomers who consider relocating are looking for lower-cost areas: according to migration studies, Illinois has been losing retirees to states like Florida, Arizona, and South Carolina, largely in search of cheaper living and tax advantages. Those who stay in Illinois often do so because they’ve paid off mortgages or secured low interest rates, making their current home relatively affordable compared to buying anew at today’s rates.

Lifestyle and Community

Lifestyle factors are equally important. As boomers retire or enter semi-retirement, they often prioritize proximity to family, community ties, and comfort. Nationally, a top reason boomers sell their home is to move closer to friends or family.

In Illinois, many are reluctant to uproot from communities where they’ve lived for decades. In one survey, 93% of older respondents said they wish to age in place, citing the desire to continue enjoying familiar neighbors, routines, and activities.

For some, downsizing doesn’t mean moving to a different city at all – it could mean moving to a smaller home in the same area to remain near friends, doctors, and social networks.

Health Considerations

Health considerations also loom large. As boomers age into their 60s and 70s, homes with first-floor bedrooms, fewer stairs, and accessibility features become more appealing. About 41% of older homeowners reported that their current home lacks at least one essential accessibility feature for aging (e.g., a bedroom or full bathroom on the main level).

Some will modify their homes to accommodate health needs, while others may seek single-story condos or senior-oriented housing that offers safety and convenience. Overall, lifestyle and health concerns push many toward stability and retrofitting their existing homes, rather than dramatic relocations, unless declining health forces a move.

Housing Choices: Single-Family vs. Condos and Retirement Communities

When Illinois boomers do make a change in housing, what types of homes are they choosing? Data suggests that the vast majority continue to favor single-family houses. Nationwide in 2022, 79% of all home purchases were detached single-family homes, and this was common across generations.

Baby boomers, in particular, often stick with the familiar: many downsizers still want a small house with a yard or a townhome, rather than a high-rise apartment. Condos and maintenance-free units do attract some boomers — especially those tired of shoveling snow or doing yardwork — but boomers are less likely to choose condos than the generation before them.

For example, the preceding Silent Generation (now in their late 70s and 80s) was the most likely to buy in senior-specific housing or condos (about 12% of silent generation buyers chose senior-oriented communities). Younger boomers (in their late 50s to 60s) have lower rates of moving into age-restricted retirement communities, preferring independent living arrangements.

Limited Appeal of Retirement Communities

Retirement communities and assisted living facilities saw relatively little influx of young seniors (boomers) during 2018–2023. In part, this is because most boomers aren’t old enough to require assisted living yet, and many cannot afford the steep costs of upscale senior communities.

The average senior living facility can be as financially out-of-reach as a luxury downtown condo, so it’s not a viable option for the middle-class boomer. Instead, those who sell large homes and don’t buy another house often turn to renting an apartment or moving in with family.

Some boomers have taken the intermediate step of renting in active adult communities or 55+ apartment complexes that offer social activities but no medical care. Overall, homeownership remains high in this generation – in suburban Cook County, for instance, over 83% of adults 65+ are homeowners – so most boomers are still living in owned homes (single-family or condo) rather than rentals or communal housing.

The upshot is that Illinois’s baby boomers are largely staying in the traditional housing market, either in the same home or trading down to a smaller home, with only a modest shift toward condos or senior living facilities in this period.

Financial Factors: Home Prices, Mortgage Rates, and Affordability

Home prices in Illinois climbed notably from 2018 to 2023, affecting boomers’ decisions on both buying and selling. In 2018, the statewide median home price (all property types) was around $202,000, and by 2023 it had risen to approximately $269,000. That ~33% increase in five years boosted the home equity of baby boomers who owned property, giving many a larger nest egg.

Indeed, boomers as a group hold a substantial portion of housing wealth. By 2023, Americans over 55 owned 54% of all owner-occupied homes (up from 44% in 2008). In the Chicago metro area, boomers own about 35.6% of all homes, despite being only 19.9% of the population. This growing dominance in homeownership means many boomers have significant equity that can be tapped in a sale or reverse mortgage. It also means that if they don’t sell, a large chunk of housing stock is effectively held off the market.

The Double-Edged Sword of Rising Prices

However, rising prices are a double-edged sword. While boomers selling their long-time homes have reaped gains, those looking to buy new homes face higher costs. This is compounded by the trajectory of mortgage rates.

During the late 2010s, mortgage rates were relatively low, bottoming out at historic lows during 2020–2021. The average 30-year fixed rate hit an all-time low around 2.65% in early 2021. Many boomers took advantage of those low rates to refinance or even purchase second homes.

But by 2022 and 2023, rates spiked dramatically – the average 30-year rate topped 7% in late 2023, the highest in two decades. For boomers contemplating a move, this rate spike became a major deterrent. Selling a home with a 3% mortgage to buy another at a 7% rate often didn’t make financial sense, especially if downsizing wouldn’t significantly lower the price.

As a result, plenty of would-be sellers stayed put, unwilling to lose their inexpensive mortgage or take on new debt in retirement. High borrowing costs and high home prices together have eroded affordability for those on fixed retirement incomes.

Cash Buyers and Renters

For boomers who did buy homes in 2018–2023, many leveraged equity from a previous sale and often made large down payments or paid cash, thus sidestepping some impact of rising rates. Others chose to rent after selling – an attractive option for some downsizers to avoid property taxes and maintenance costs.

Yet renting has its own affordability concerns, as rents have increased and offer no equity return. On the whole, Illinois baby boomers have had to navigate a tricky financial landscape: benefitting from increased home values on paper, but facing higher costs to move. This financial calculus has reinforced the trend of aging in place for many, while those who do relocate tend to do so for compelling financial or personal reasons.

Selling Trends: From Homeowner to Renter or Assisted Living?

house for sale in Illinois — Shutterstock

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When boomers decide to sell their Illinois homes, what next steps are they taking? A portion have indeed moved out of homeownership – some transition to renting, while others eventually enter assisted living or move in with relatives.

Selling to rent became a more discussed trend as home prices peaked. Some retirees sold high and then leased a smaller condo or apartment, banking the proceeds to live on. This is especially common among those who want flexibility (e.g., the freedom to travel) or who split time between Illinois and a warmer state.

That said, there is limited hard data on how many boomers are choosing rentals after selling. Anecdotally, real estate agents report some empty nesters cashing out of big suburban houses and renting luxury apartments in downtown Chicago or in walkable suburban downtowns. Renting can also be a stopgap while deciding on a long-term plan.

Limited Moves to Senior Living

Moving directly to an assisted living facility or senior community has not been the dominant path for young seniors (in their 60s or early 70s). Most baby boomers in 2018–2023 were under 75 and aiming to remain independent. Nationally, only a small fraction of boomers relocating have gone into senior housing at this stage.

In fact, one moving industry analysis found just 1 in 5 people moved after retirement at all (meaning 80% did not move). Many boomers are putting off the move to any kind of elder care facility as long as possible.

COVID-19 also played a role here, as it raised safety concerns about nursing homes and assisted living centers, leading some families to care for aging relatives at home longer. In Illinois, it’s common for an older parent to move in with an adult child rather than enter a facility – a cultural and economic choice noted in Chicago, where multigenerational households are part of why boomers haven’t flooded the market with home sales.

Only when health crises hit (such as dementia or serious mobility issues) are boomers more likely to sell and move into a care facility or age-restricted community. During 2018–2023, this was more prevalent among the oldest boomers (mid-70s) and the remaining members of the Silent Generation, rather than the younger boomers who are still relatively active.

Impact of COVID-19 on Boomer Housing Decisions

The COVID-19 pandemic (2020–2022) significantly influenced baby boomers’ home-buying and selling behaviors. Early in the pandemic, many boomers hunkered down. Health concerns and stay-at-home orders led a number of older homeowners to delay putting their homes on the market in 2020.

Nationwide home listing activity dropped as sellers – especially older individuals at higher risk from the virus – chose to avoid open houses and strangers entering their homes. This contributed to a tighter housing supply. Some boomers who might have downsized in those years held off for safety, effectively extending their stay in their current homes.

Pandemic Opportunities

On the flip side, the pandemic’s housing boom presented opportunities. By mid-2020 into 2021, home values surged in Illinois and mortgage rates hit rock-bottom. This combination enticed some boomers to sell for a profit and downsize or relocate while the market was hot.

There are reports of boomers who sold their large suburban homes at premium prices and moved to smaller homes or condos, pocketing substantial gains. Zillow data indicated that a segment of baby boomers made “tidy profits” during this period by cashing out and downsizing, which improved their retirement finances.

Additionally, remote work trends during COVID allowed some later-career boomers to move earlier than planned – e.g., leaving Chicago for a quieter area or a vacation home where they could work remotely until retiring.

Reinforcing Aging in Place

However, the overall effect of COVID-19 seems to have reinforced the aging-in-place tendency. By 2023, housing researchers observed that older Americans were holding onto their homes longer than expected, in part due to pandemic-related lifestyle shifts.

The anticipated “silver tsunami” of boomers selling en masse as they retire has been more of a trickle. One updated study found that longer life expectancies and the pandemic’s impacts mean there may not be a sudden surge of boomer homes hitting the market; instead, older households are aging in place, and any turnover will be gradual.

COVID-19 also cast a harsh light on nursing homes and assisted living facilities, which experienced outbreaks and lockdowns. This likely made many boomers even more determined to remain in private homes or delay moves to group living. Indeed, senior housing occupancy rates plummeted in 2020 and have only partially recovered by 2023 (Illinois assisted living occupancy was still around 88%, after falling to lower levels during the pandemic).

In sum, COVID-19 temporarily paused many real estate plans, drove some strategic moves for those seeking safety or advantage, but ultimately strengthened the resolve of many Illinois boomers to stay in their homes where they feel in control of their environment.

Comparing 2018–2023 to the Previous Decade (2008–2018)

The housing behaviors of baby boomers in 2018–2023 represent an evolution of trends that began in the prior decade, albeit with some notable shifts. From 2008 to 2018, boomers moved through their 50s and 60s during a period marked by the Great Recession and recovery. In those years, many were still working and delayed retirement moves due to the housing crash.

Some who might have downsized around 2010 couldn’t, because home values had sunk – they waited for their equity to rebuild. By 2018, with the economy recovered, a modest downsizing wave was anticipated as the leading edge of the boomers (born in 1946) hit their early 70s.

Indeed, homeownership among older adults was rising through the 2010s: the number of older-headed households grew faster than other age groups nationwide, indicating many boomers held onto homeownership post-recession. In Illinois, older homeowner numbers climbed as well (Chicago saw a 12.5% increase in 65+ homeownership from 2012 to 2019).

Shifts in the Recent Period

The 2018–2023 period has shifted those behaviors further toward staying put. Compared to the previous decade, boomers in the last five years have been even less inclined to relocate frequently.

One major difference is the interest rate environment. The 2008–2018 decade saw steadily falling mortgage rates, which made it easier for boomers to refinance or consider right-sizing moves. In contrast, 2018–2023 ended with sharply rising rates that essentially penalize anyone giving up an old low-rate mortgage. This has created a kind of “lock-in” effect that wasn’t present before, discouraging moves.

Another difference is the stage of life: more boomers are now truly entering old age (mid-70s), whereas in 2008 many were still in their peak working years. Despite being older, today’s boomers are defying some past patterns. Previous generations (like the parents of boomers) often downsized or moved to retirement communities around retirement age. Boomers are doing this less.

Studies note that this generation is aging in place more than prior cohorts, meaning fewer homes are being freed up by seniors than experts once predicted. The feared or hoped-for glut of boomer-owned houses hitting the market (“silver tsunami”) around the 2020s has not materialized; instead, boomers are largely holding onto their homes longer than the generation before them.

Willingness for Longer Moves

That said, not everything is static. In comparison to 2008–2018, boomers in Illinois 2018–2023 have shown greater willingness to make long-distance moves when they do move. The median distance moved by younger boomers who bought homes in 2022 was 90 miles – significantly longer than the shorter local moves many made in earlier years.

This suggests that when downsizing or relocating now, boomers are more open to leaving their immediate area (for example, moving from Illinois to another state or from Chicago to downstate) if it suits their retirement lifestyle.

This trend aligns with the rise of Sun Belt retirements; Illinois saw a net outflow of boomer retirees in the late 2010s and early 2020s, whereas a decade prior the pattern was less pronounced. Additionally, the last five years have seen boomers leveraging technology and remote work in ways that weren’t as feasible in 2010, allowing some to transition to new locales before fully retiring.