Massachusetts, with its historic towns, prestigious universities, and vibrant metropolitan areas, has long been a desirable place to live. However, in recent years, the state’s housing market has faced unprecedented challenges, with soaring prices and dwindling inventory causing frustration for many would-be homebuyers.

At the center of this complex market stands the Baby Boomer generation—those born between 1946 and 1964—who control an outsized portion of the state’s housing stock. While experts once predicted a sudden massive influx of Boomer-owned homes flooding the market as this generation downsized for retirement, the reality has proven quite different. Instead, Massachusetts Boomers are charting their own course, making housing decisions based on financial pragmatism, deep community ties, and changing notions of what retirement should look like.

Boomer Homeownership Overview, 2018–2023

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Baby Boomers remain a powerful force in Massachusetts’ housing market. They comprise roughly 23% of the state’s population but head 36% of all households, an outsized share as many are long-time homeowners. In fact, baby boomers owned nearly 39% of all owner-occupied homes statewide in 2023, reflecting how much of the housing stock this generation controls.

Many boomers are now “empty nesters” – about 21 million homes nationwide have residents 55+ with no children at home – yet they continue to occupy these houses rather than selling. This dynamic has significant implications for Massachusetts, where a wave of boomer sales could ease supply shortages, but so far that “silver tsunami” of listings has not materialized.

Urban vs. Suburban: Where Are Boomers Buying?

Contrary to some expectations, Massachusetts boomers have largely not flocked to urban condos in retirement. Earlier predictions imagined empty nesters downsizing to trendy city apartments, but reality proved the opposite. Many boomers are staying in suburban and small-town communities where they raised their families, or even upsizing locally, rather than relocating to downtown Boston high-rises.

Both boomers and millennials now seek similar amenities in walkable suburban neighborhoods – nature trails, shops, and restaurants nearby – instead of remote large-lot homes. Baby boomers also tend to favor multi-generational environments over age-restricted senior complexes, valuing neighborhoods with mixed ages (often saying having younger neighbors makes them feel “younger” too).

Overall, the trend from 2018–2023 shows boomers reinforcing suburban demand: they’re staying put in the suburbs, and when they do buy, it’s often in familiar areas or retirement-friendly towns within Massachusetts, rather than in urban centers.

Downsizing or Staying Put?

The Prevalence of Aging in Place

A dominant trend among Massachusetts boomers in recent years is aging in place. Despite reaching retirement age, a large majority are not downsizing. National surveys indicate about 78% of baby boomers plan to age in place in their current home. Massachusetts reflects this norm – boomers are remaining in their single-family homes longer than prior generations did.

Many have now lived in the same house for decades; around 40% of U.S. boomers have been in their home 20+ years. This means fewer big homes entering the market for younger families. In Greater Boston, empty-nest boomers still owned 25% of all large homes (3+ bedrooms) in 2022, far outpacing millennials with children (who held only 12.5%).

In other words, a significant share of Massachusetts’ family-sized houses remain occupied by couples or individuals in their 60s and 70s. Some boomers do downsize, of course, but it’s a trickle rather than a wave. Even those inclined to move often struggle to find suitable smaller homes nearby, so they end up staying by default. The net effect from 2018 to 2023 is that downsizing has been limited, and “staying put” is the prevailing choice.

Motivations Behind Boomer Decisions

boomers talking with a financial advisor — Shutterstock

Why are so many baby boomers holding onto their homes? The motivations are both practical and sentimental. Financial factors weigh heavily: boomers who bought their homes decades ago often have low property tax assessments and, if they have a mortgage, it’s likely at a much lower interest rate than what they’d face on a new loan today.

In many cases, the cost of moving is simply too high, as one expert noted – home prices have surged ~40% since 2020 and mortgage rates have doubled, so selling and buying another home would mean paying far more for less house. Plus, Massachusetts boomers on fixed incomes have to consider that the median household income for seniors 65+ is around $63,000 (roughly half the income of 45–64 year-olds), limiting their ability to take on new housing costs in retirement.

Key Reasons Boomers Stay Put

Low Interest Rates on Current Home

Many refinanced or bought when 30-year mortgage rates were 3–4%. With new mortgage rates around 6–7% in 2023, moving means forfeiting a cheap loan for a costly one. This “lock-in” effect convinces homeowners to stay put rather than pay much more for financing a downsized home.

High Home Prices and Taxes

Massachusetts home values have risen steeply, so even a smaller condo can be very expensive. Property taxes are also high in many communities. Long-time owners may have tax benefits or exemptions they’d lose by moving. In short, downsizing doesn’t always save money in Massachusetts’ pricey market.

Love of Community and Comfort

The most common reasons for aging in place are liking one’s current home and neighborhood, and not seeing a better alternative nearby. After decades in one place, boomers have deep roots – friends, doctors, favorite shops – which they hesitate to leave. Unless a compelling option exists (like a convenient single-level home in the same town), many prefer to stay.

Healthy and Active Lifestyles

Boomers today are living longer and healthier lives, so their existing homes still suit them in their 60s, 70s, even 80s. With renovations or in-home help, they can manage maintenance. Improved health and longevity mean less urgency to move into senior housing.

Few Downsizing Options

In some Massachusetts towns, there’s a shortage of condos or smaller single-level houses that would appeal to downsizing seniors. If a boomer wants to stay in the same area, they may find nothing available that’s significantly cheaper or more convenient than their current house. This lack of inventory of senior-friendly homes keeps many in larger houses by necessity.

Retirement Security and Equity

After the 2008 financial crisis, many boomers became cautious. Some lost savings and saw their home equity dip, only to watch it recover and grow in the 2010s. By 2023, a typical Massachusetts boomer had substantial equity, which they view as a safety net. Rather than risk that by moving or renting, they hold on to their home (which can also be a source of cash via equity loans if needed).

Owning real estate provides stability. Additionally, some prosperous boomers purchased second homes or investment properties during the boom years. These owners aren’t forced to sell their primary home – they often split time with a vacation home or keep properties as income investments, further reducing turnover of housing stock.

Sentimental attachment and financial logic thus reinforce each other. As Redfin’s economics lead Chen Zhao summarized, older homeowners stay because they “like where they live and there is no good alternative for them”. In Massachusetts, this mindset has kept many boomers in place through 2018–2023 despite the lure of cashing out in a hot market.

Market Trends and Financial Factors (2018–2023)

Massachusetts’ housing market from 2018 to 2023 was defined by soaring prices and tight supply, conditions that influence boomer behavior. Home values climbed dramatically, which on one hand boosted boomers’ home equity, but on the other hand made downsizing or moving more expensive.

Rising Home Prices

The median price of a single-family home in Massachusetts jumped from roughly $397,000 in 2018 to $600,000 in 2023, a 51% increase in five years. Many suburbs saw even steeper gains – for example, one Worcester County town’s median price rocketed 81% (from $225K to $407K) between 2018 and 2023. This rapid appreciation meant that any boomer selling their house would likely face stiff competition and high prices for the next home, unless they moved to a much cheaper region.

Interest Rate Fluctuations

Meanwhile, mortgage interest rates underwent a historic swing during this period. In the late 2010s, 30-year fixed rates hovered around 4% or less; by 2020–2021, rates fell below 3%, fueling a buying frenzy. But by 2022–2023, rates surged past 6%, reaching levels not seen in over 15 years.

This spike, combined with high prices, pushed Massachusetts housing affordability to its worst point in years. For boomers, the rate rise was a double-edged sword: it discouraged them from purchasing new homes (as loans became costlier) and also kept younger buyers at bay, which reduced pressure to sell a home quickly since demand tempered slightly.

However, overall inventory stayed near record lows, and Massachusetts’ home supply in 2023 was still insufficient for demand. Boomers sitting on prime real estate only exacerbated this crunch, albeit unintentionally.

Property Taxes and Cost of Living

Property taxes and cost of living are another financial consideration. Massachusetts has some of the highest property taxes in the nation, and this can motivate some retirees to relocate or downsize. But long-time owners often have lower assessed values than what a newly purchased home would cost in taxes.

Some Massachusetts towns offer senior tax relief programs, and the state income tax exempts Social Security, softening the burden for those who stay. In short, the financial calculus for a boomer often favors staying: their current home carries a low mortgage (or none at all) and a tax bill they know, versus an uncertain and likely higher-cost alternative if they move.

Migration and Relocation Patterns

happy boomers in new home — Shutterstock

One big question has been whether Massachusetts boomers will relocate en masse – either within the state or out of state – as they retire. From 2018 to 2023, the evidence shows no mass exodus so far.

Real estate analysts once warned of a coming surge of home listings as boomers downsized or moved to warmer climes, but in reality, longer, healthier lives and high home prices cause these people to hunker down instead of selling. Many boomers have decided that staying in Massachusetts (or at least not going far) is preferable.

The expected migration to Sun Belt states like Florida has been modest – certainly nowhere near a flood. “A few years back, we heard…there would be all this inventory of homes for sale,” said one housing economist. “But we haven’t seen that… inventories are at historic lows”, with seniors largely staying put.

Popular Destinations for Those Who Move

That said, some relocation trends can be observed. Those boomers who do leave Massachusetts often head for traditional retirement havens. Florida and Arizona remain popular destinations, as warm weather and tax advantages beckon. National data in 2023 showed multiple Florida metro areas (like Cape Coral, Clearwater, and Fort Lauderdale) ranking among the top spots where boomers were moving.

Within Massachusetts, retirees tend to downsize locally if possible – for example, moving from a large suburban home to a smaller condo in the same region, or to a scenic retirement-friendly area like Cape Cod or the Berkshires. Cape Cod’s towns have long attracted older adults with their beaches and small-town charm, and indeed Barnstable County has one of the highest median ages in the state.

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Some boomers have chosen to relocate within the state to enjoy amenities: coastal towns, college towns with lifelong learning opportunities, or rural areas with lower stress. But importantly, even these moves are happening gradually and individually, not as a broad wave.

Barriers to Relocation

For many, the lack of suitable housing options locally is a barrier to moving at all. A 2020 study of Boston’s inner suburbs found that nearly 45% of large homes were occupied by 55+ households, and about 15% by seniors over 70. It noted that “while many of these seniors are staying in large homes because they want to, others may be interested in moving but have few other options in their community.”

In other words, even seniors open to downsizing can’t find an affordable, appealing place in the same area, so they stay. This dynamic plays out across Massachusetts: unless an older homeowner is willing to leave their community (or the state), they often remain in place due to slim local inventory of downsized housing.

The result is that migration within Massachusetts is limited – boomers aren’t broadly moving from, say, MetroWest into Boston condos or vice versa. They’re either staying put or, in a smaller subset of cases, leaving the state upon retirement. Overall, from 2018 to 2023 Massachusetts did not see a notable net loss of baby boomers; instead, it saw its senior population grow as boomers aged in place.

Comparison to 2008–2017 Trends

When we compare 2018–2023 to the previous decade (2008–2017), we see continuity in boomer housing choices, with some new pressures emerging.

Post-Financial Crisis Recovery

In the aftermath of the 2008 financial crisis, many boomers delayed retirement moves. The housing crash eroded home values and nest eggs, so downsizing was put on hold for much of the early 2010s. By the mid-2010s, markets recovered, but even then boomers did not sell homes at the rate some expected.

In 2015–2017, talk of a looming “silver tsunami” began, yet listings from older sellers remained subdued. This pattern persisted into 2018–2023 and, in fact, intensified: boomers grew even more likely to stay put as they got older. The Boston real estate market’s strength seemingly gave them more reason to hold onto their appreciating assets instead of selling.

One 2018 analysis noted that instead of downsizing en masse, boomers were mostly staying put while millennials moved into suburban neighborhoods around them – a trend that only became more pronounced in the late 2010s.

Notable Changes in Recent Years

There have been a few notable changes in the recent period. One is the rise of inter-generational competition for housing. In 2008–2017, millennials were in their 20s and early 30s, just ramping up in home buying; by 2018–2023, millennials hit their 30s and 40s prime home-buying years, directly competing with downsizing boomers for the same smaller houses.

This created scenarios by the early 2020s where a first-time millennial buyer and a retiring boomer might bid on the same condo or ranch – something that was less common a decade prior. Indeed, boomers hold more real estate wealth than any other generation and aren’t afraid to use it: some outbid younger buyers for desirable downsized homes, contributing to starter-home scarcity.

The result has been frustration for both groups: Millennials face record-low starter home inventory, and boomers who want to downsize face bidding wars and high prices, making the process daunting.

Interest Rate Impact

Another difference is the interest rate environment. The 2008–2017 decade saw historically low and stable mortgage rates (generally 3-5%), which theoretically made it easier for boomers to trade homes or tap equity. In practice, many still stayed put, but those who did move could finance cheaply.

In contrast, 2022’s rate spike put a sudden chill on any thought of swapping homes – a new obstacle that wasn’t present earlier. This likely further reduced boomer mobility in 2022–2023 compared to, say, 2015 when low rates and rising prices might have enticed more moves.

Boomers as Buyers

Lastly, the sheer size of the boomer cohort moving through retirement in the late 2010s vs. early 2020s has shifted market dynamics. By 2023, the youngest boomers were nearly 60 and the oldest about 77, so a larger portion had reached typical retirement age than in 2013. Yet instead of a surge in home sales by retirees, boomers became the largest buying group in the market.

Nationally, they overtook millennials as the biggest share of home buyers in 2022, making up 39% of buyers (up from 29% a year before). This was a stark change from prior years when millennials led the pack. What it underscores is that many boomers were not just passively sitting; some were actively buying new homes – whether investment properties, vacation homes, or moving closer to family – and they had the financial clout to do so.

During 2008–2017, boomers were often sellers or staying put; in 2018–2023, they were just as likely to be buyers, even outpacing younger generations in purchases. This highlights how boomers leveraged recovered wealth and equity to shape the market on both the supply and demand sides.