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New Jersey’s baby boomer generation (born 1946–1964) has significantly impacted the housing market in recent years. Between 2018 and 2023, boomers in the Garden State have been making important decisions about whether to stay in their longtime homes, downsize to smaller ones, or relocate. Their choices are shaped by retirement, finances, family, and the COVID-19 pandemic. This article explores how New Jersey boomers have been buying homes, selling, or staying put during 2018–2023.

Staying Put vs. Downsizing

Many New Jersey boomers are staying in place as they age, but a significant number are also downsizing or moving. A 2024 survey found 78% of baby boomers nationally expect to remain in their existing home as they age. New Jersey boomers echo this sentiment: about one-third in a statewide poll said they do not plan to move in the next 10 years. Many have lived in their houses for decades and feel comfortable staying put.

At the same time, downsizing is a common goal for a substantial share of boomers. Roughly 24% of older New Jersey respondents said they have downsized or plan to downsize to a smaller residence. After children move out, empty-nesters often find they don’t need a big house with many bedrooms.

Baby boomers have become the largest group of home sellers in recent years – over half of home sellers (around 52–53%) are boomers, according to national data. Many of those sales are driven by the classic downsizing scenario: their home was too large for their needs or too much work to maintain.

Not every boomer is buying a tiny condo. Some who do move opt for different kinds of homes, not always smaller. Studies in the mid-2010s noted that some retirees moved to a larger home – for example, to have space for family gatherings or an adult child moving back home.

Over 70% of older residents who wanted to downsize felt there were not enough suitable smaller housing options in their community. This housing shortage can make downsizing tricky, causing some to stay in place longer than they’d like.

Key Motivations: Family, Finances, and Lifestyle

Boomers and grandchildren NJ — Shutterstock

Family Connections

One of the top reasons New Jersey boomers give for moving is the desire to be closer to family – for example, near adult children and grandchildren. Family considerations were the number one factor cited by home sellers of all ages in 2022, especially older sellers who wanted to relocate nearer to relatives. Many retirees love the idea of seeing the grandkids more often or having adult children within an easy drive.

Retirement and Financial Considerations

Another big motivation is retirement itself. Upon retiring, some boomers move to reflect their new lifestyle – perhaps to a quieter community or a home all on one level. In New Jersey, retirement often pushes homeowners to consider lower-cost areas.

The state’s high cost of living and property taxes are well-known concerns for retirees. Older New Jerseyans say the cost of living (37%) and property taxes (36%) are top reasons they might leave the state. Property taxes in NJ are among the highest in the nation, which can be tough on people with fixed retirement incomes.

Health and Lifestyle Needs

As people age, they may seek housing that better fits their health circumstances – for example, avoiding stairs, or moving to a home with accessibility features. Some choose to live in a community that provides maintenance services or even assisted living if needed.

Others are motivated by the appeal of amenities: today’s boomers are living longer and staying active, so they want homes and neighborhoods that support an active, social lifestyle. Modern 55-plus communities often advertise resort-style amenities because boomers value recreation and social connection in their retirement years.

About 10% of New Jersey boomers foresee possibly moving in with adult children if their health declines or to save on costs – a multigenerational living arrangement that some families embrace.

Home Equity and Financial Security

Financially, many boomers have substantial home equity built up after years of ownership. By 2020–2022, home values had soared, giving boomers an opportunity to “cash in” on their big New Jersey homes. This enabled some to buy their dream retirement home outright with cash.

Boomers often have the upper hand in the market as repeat buyers with significant equity, allowing them to purchase their preferred home with ease. However, not all boomers feel financially secure – plenty worry about having enough money for retirement, so selling a home to unlock equity or reducing monthly housing costs is a practical necessity. About 42% of older New Jersey homeowners reported struggling with the cost of home upkeep and repairs.

The COVID-19 Effect on Boomer Housing Decisions

Starting in 2020, the COVID-19 pandemic added a new dimension to boomer housing trends. Early in the pandemic, many older adults were cautious about moving or even having strangers come for house showings. Some boomers who had considered selling in 2020 decided to delay putting their homes on the market due to health concerns. However, as the pandemic progressed, COVID also inspired new moves for boomers in New Jersey:

Earlier Retirement Decisions

The crisis caused some boomers to rethink their priorities and retire sooner than planned. A number of older workers left the workforce in 2020–2021, which often meant relocating or downsizing in line with retirement. For example, an employed couple in their early 60s might have accelerated plans to buy a retirement home at the Jersey Shore or in a warmer state.

Remote Work and “Pre-Retirement” Moves

Many boomers who were still working found themselves doing remote work from home. This opened up options to move while still employed. Some in their late 50s or early 60s went ahead and bought their future retirement house and worked remotely from there.

New Jersey builders observed this trend: boomers in their 50s were purchasing homes in 55+ developments earlier than usual because flexible work-from-home arrangements let them start enjoying the community amenities even before retirement.

Space and Safety Considerations

The pandemic made home feel like a safe haven. Some city-dwelling boomers chose to move to suburban or rural areas where they could have more space and feel safer. Within New Jersey, there were reports of people leaving dense urban neighborhoods for homes with yards.

Being able to drive to do errands (avoiding public transit) and having private outdoor space became more attractive during COVID. This likely boosted demand for suburban single-family homes in 2020–2021.

Rise in Multigenerational Living

Another response to COVID was the rise in multigenerational households. Adult children came back home, or elderly parents moved in with their grown kids, as families “quarantined” together. In fact, 2022 data showed about 19% of New Jersey home buyers purchased a multigenerational home to accommodate aging parents or adult children.

COVID’s impact was somewhat paradoxical: it temporarily slowed the real estate market in spring 2020, but then supercharged moves by late 2020 through 2021. By 2022 and 2023, the housing market began to normalize, but inventory became very tight – many owners locked in super-low 2–3% mortgage rates in 2020–21 and have been reluctant to sell and lose those rates. A good portion of those rate-locked owners are baby boomers who now plan to stay put even longer.

The Rise of 55+ Communities

retirement communities New Jersey — Shutterstock

One of the most notable trends of the late 2010s and early 2020s has been the popularity of 55+ communities (also known as active adult or retirement communities). New Jersey has seen a boom in these developments, from leafy suburban subdivisions to sleek new apartment complexes.

Resort-Style Living

Resort-style amenities are now common – swimming pools, fitness centers, walking trails, tennis courts, and organized social events are all part of the package. Baby boomers, who famously redefined youth culture in the 1960s and ’70s, are now redefining retirement living.

They tend to be healthier and more independent than previous generations at the same age, and they expect retirement communities to support an active lifestyle. As a result, today’s 55+ communities in New Jersey feel more like resorts or country clubs than old-fashioned “senior housing.”

Luxury Downsizing

Developers in New Jersey report strong demand for these communities. For instance, Toll Brothers and other builders have launched upscale 55+ projects in the state. One developer noted that many buyers in their 55+ neighborhoods are empty nesters who sold large homes for a good price and now want to “downsize without giving up luxury.”

These buyers still want high-end kitchens, spacious master suites, and modern design – just on a smaller, easier-to-maintain scale. They are often moving from a big four-bedroom house to a nicely appointed two-bedroom townhome or condo. The appeal is shedding the burden of yard work and maintenance while keeping a comfortable lifestyle.

Location and Rental Options

The locations of 55+ communities in New Jersey vary. Quite a few are in suburban areas or on the fringes of metropolitan regions. For example, Ocean County (around towns like Toms River, Brick, and Barnegat) has long been a hotspot for retirement communities. Middlesex County’s Monroe Township, with its sprawling adult communities like Rossmoor and Clearbrook, is another well-known haven for seniors.

A recent trend is the creation of 55+ rental communities, not just ownership. One such development is Barnegat 67 in southern Ocean County, which offers rental apartments for seniors above ground-floor retail stores. This kind of integrated community provides the financial flexibility of renting along with on-site conveniences like a gym, lounge, and shops.

Nationwide surveys indicate about 1 in 5 boomers (20%) are considering moving to a 55-plus or active adult community (or have already done so). New Jersey’s offerings in this category are plentiful, so local interest is high. These communities experienced a boost after COVID lockdowns: some seniors who felt isolated realized that a dedicated 55+ community could provide more social contact and services.

Geographic Trends: Where Are Boomers Moving?

Geographically, baby boomers in New Jersey are making a variety of housing choices. Some are moving out of state, but many are simply relocating within New Jersey – often changing the type of community they live in.

Out-of-State Migration

It’s no secret that a share of New Jersey’s boomers head for warmer or cheaper locales upon retirement. States like Florida, the Carolinas, and Pennsylvania attract NJ retirees each year. New Jersey consistently ranks among the top states that retirees move out of.

High taxes and costs are a push factor, while places like Florida (with no state income tax and balmy winters) are a pull factor. In one New Jersey survey, 17% of older residents said they plan to move out of state in the next decade. When boomers do leave NJ, Florida tends to be the number-one destination. (Over 35,000 New Jerseyans relocated to Florida in 2023 alone, a significant number of them retirees.)

Relocation Within New Jersey

Of those boomers who remain in the Garden State, many choose to move to a different part of New Jersey. Some leave the busy North Jersey/New York City commuter counties and settle in more relaxed areas such as the Jersey Shore or the southern part of the state.

Shore communities like Cape May, Atlantic, and Ocean counties have some of the highest median ages in NJ, showing decades of retiree influx. This continued between 2018 and 2023, with boomers buying homes near the coast or in adult communities there.

Urban vs. Suburban Choices

Historically, boomers raised families in the suburbs, and many remain there. But there is a subtle shift: some empty-nest boomers are actually moving closer to urban centers or walkable towns for convenience. Rather than a remote rural retirement, they prefer a vibrant downtown with restaurants, shops, and healthcare nearby.

In New Jersey, this can mean moving to places like Morristown, Red Bank, Princeton, or Jersey City – smaller cities or towns with a walkable core. However, this is balanced by the fact that most boomers still prefer a suburban or small-town setting.

According to National Association of Realtors data, younger baby boomers (ages 60–69) were the most likely of any generation to buy a home in a small town, while older boomers (70–78) were most likely to buy in a suburban subdivision. In contrast, very few boomers chose to buy in urban city centers.

Rural Considerations

New Jersey doesn’t have vast rural regions, but parts of Warren, Sussex, or Salem County are quite rural. Some retirees do opt for rural tranquility or farm-style living, but many rural parts of NJ actually saw population declines in the 2010s as younger people left and the remaining population aged.

A report in 2021 warned that hundreds of thousands of New Jersey’s seniors are “aging in place” in car-dependent suburbs that are not pedestrian-friendly. More than half of senior homeowner households in NJ (over 300,000 households) are in communities that lack walkable town centers or public transportation.

As they get older and potentially stop driving, these boomers could face challenges. This has sparked conversations about creating age-friendly towns where even suburban and rural areas provide more transportation and housing choices for seniors.

Boomers as Market Influencers

By 2022–2023, baby boomers had become dominant players on both sides of the real estate market. They made up the largest share of home sellers of any generation (around 52–53%), meaning over half of the homes listed in the past few years were being sold by boomers.

Typically, these sellers had owned their homes for a long time – older boomers had been in their houses 16 years on average before selling. After such a long tenure, the decision to sell often comes as they transition into retirement or an emptier nest.

When boomers sell, what do they do next? A good number purchase another home, often out-of-state or in a 55+ community. Others choose to rent after selling – pocketing their profits. In New Jersey’s hot market of 2021–2022, some boomers sold their houses quickly and then opted to rent for a while to wait out the market or to give themselves flexibility.

On the buying side, baby boomers have recently even outpaced millennials in home purchases – a notable reversal of earlier trends. In the past year or two, boomers comprised about 39–42% of home buyers, the largest of any generation, while millennial buyers fell to around 28–29%.

This shift happened as the housing market became challenging for younger buyers (due to high prices and interest rates), whereas boomers could leverage their equity and often pay cash. Many boomers buying homes in New Jersey are repeat buyers (not first-timers), and they often have substantial down payments or all-cash offers, making them competitive in bidding wars.

Boomers have been trading homes later in life – selling one and buying another that better fits their next stage. Among all age groups, younger boomers (in their 60s) moved the farthest distance on average when they bought a new home – a median of about 90 miles. This suggests many even left their immediate region. Older boomers (in their 70s) moved a median of 60 miles.

Homeownership rates for boomers remain very high – nearly 79% of baby boomers own their home (as of 2023), only a slight dip from a record high around 80%. In other words, boomers as a group haven’t abandoned homeownership; most who sell one home will end up owning a different one.

2018–2023 vs. Previous Decade

Housing trends evolve over time, and the period from 2018 to 2023 for boomer homeowners looks different from the prior 2008 to 2017 period in several ways:

Recovery from Housing Recession

The 2008–2012 housing crash and recession hit just as many early boomers were reaching their mid-50s and early 60s. In that earlier period, home prices plummeted, which likely made a lot of boomers postpone selling their homes.

Indeed, analysts noted that the expected wave of boomer downsizing “hadn’t materialized yet” by the early 2010s. Many stayed put because their home value had dropped or they were waiting for the market to recover before selling.

By contrast, 2018–2023 saw a strong housing market (especially 2020–2022) with rising prices. This gave boomers confidence that they could sell at a good price. The later half of the 2010s and early 2020s finally unlocked the massive home equity boomers held, resulting in the surge of boomer home sales we’ve discussed.

Retirement Timing

In 2008, the youngest boomers were only 44 and the oldest 62 – many were still in prime working years. By 2018, the youngest were 54 and oldest 72, and by 2023 boomers ranged roughly from 59 to 77 years old.

This means the bulk of the boomer generation crossed the traditional retirement age (65) during the latter period. As a result, 2018–2023 had far more boomers actively making retirement housing decisions. Back in 2008–2017, a lot of boomers were “aging in place” through their 50s and early 60s, continuing to work and holding on to family homes.

Interest Rate Impact

The 2008–2017 period saw mostly buyer’s market conditions until the mid-2010s, then a balanced market. Mortgage rates were moderate to low, which helped some boomers refinance and remain in place comfortably.

From 2018–2021, rates stayed very low, fueling a seller’s market and high buyer demand – a great environment for boomers to sell and possibly relocate. However, by 2022–2023, interest rates spiked rapidly, making new mortgages costly.

This has had a locking-in effect: boomers with a 3% mortgage are now reluctant to move and take out a new loan at 7%. So within 2018–2023, early on it encouraged movement (with low rates), but by the end, high rates started discouraging moves.

Evolution of Housing Options

Over the past decade, there’s been growth in the number and style of 55+ communities. In 2008–2017, some boomers were entering existing retirement communities (often ones built in the 1980s/90s for the previous generation), but developers were only starting to ramp up new construction aimed at boomers.

By 2018–2023, a wave of new active adult communities has come online across NJ to cater to boomer demand. The concept of working-from-home in a 55+ community wasn’t a factor in 2008–2017; now it is. The amenities have also become more upscale and tailored to boomers’ expectations in the latter period.

In summary, 2008–2017 was marked by boomers largely holding on to their homes, either because of the housing crash or because they hadn’t reached retirement in big numbers yet. In contrast, 2018–2023 saw the beginning of the long-awaited boomer downsizing wave – boosted by a strong housing market and the fact that boomers are now mostly in their 60s and 70s.

New Jersey’s older adult population grew dramatically in the last decade (the number of residents 60+ jumped nearly 25% from 2010 to 2019), and we’re starting to see the effects of that on housing. This generational transition will continue into the late 2020s as the youngest boomers hit retirement and the oldest approach their 80s.

Baby Boomer Home Buying Trends in New Jersey In the Last 5 Years

Staying Put vs. Downsizing