Baby boomers—those born between roughly 1946 and 1964—have significantly influenced Nebraska’s real estate market in recent years. From 2018 through 2023, boomers actively purchased primary residences across the state, reshaping urban neighborhoods and rural communities alike. Many downsized, others chose homes closer to family, healthcare, or lifestyle amenities. Comparing these recent choices to trends from the previous decade (2008–2017) reveals meaningful shifts in preferences, priorities, and buying behavior among Nebraska’s largest generational group.
Demographic Overview of Nebraska’s Baby Boomers
Nebraska’s baby boomers make up a significant portion of the state’s population. Around one-quarter of Nebraskans are baby boomers, making this generation the largest in the state by population. As of the late 2010s, boomers (in their mid-50s to early 70s) outnumbered millennials in Nebraska. By 2021, about 34% of Nebraska’s total population was age 50 or older, reflecting the aging of the baby boomer generation. The share of seniors in Nebraska has been steadily rising; for example, the portion of residents over 60 grew from 19% in 2012 to about 21% in 2020. In some rural Nebraska counties, over half the residents are 50 or older, whereas the larger urban counties (like Douglas County, home to Omaha) tend to have a lower percentage of older adults.
This demographic shift means a growing number of Nebraskans are entering typical retirement ages. Many are long-time homeowners. Nearly 80% of baby boomers nationwide own the home they live in, a much higher homeownership rate than that of younger generations. In Nebraska, baby boomers also hold a substantial share of housing. In 2023, about 36% of all homeowner households in Nebraska were headed by a baby boomer. This indicates that over one-third of the state’s owner-occupied homes are owned by someone roughly 59–77 years old. Baby boomers’ decisions on whether to stay put or move have a big impact on housing availability for others.
Nebraska Housing Market Trends (2018–2023)
The period from 2018 to 2023 was marked by a booming housing market in Nebraska, which set the stage for baby boomers’ buying activities. Home prices climbed steadily, especially during the pandemic-era housing surge. Nebraska’s median home values jumped sharply in 2020–2021, reaching new highs. From early 2020 to late 2021, the typical Nebraska home price rose about 26%, surpassing $200,000 for the first time in 2021. This rapid appreciation was part of a nationwide trend, but Nebraska’s home values remained lower than the U.S. average (Nebraska’s median was roughly $210k in 2021 versus $300k nationally). The price increases were widespread: in Omaha and Lincoln metro areas, home prices in 2021 were 10% or more above the prior year in most communities, and even many rural counties saw significant gains of 5–10% per year.
Market Forces and Baby Boomer Influence
Several factors drove these trends. Low interest rates through 2020 and 2021 made mortgages more affordable, fueling demand. At the same time, there was a limited supply of homes for sale. Many existing owners – including baby boomers – chose to “age in place” and stay in their current homes, which meant fewer listings hitting the market and a tighter inventory. In fact, a late 2023 survey found that a large majority of boomers plan to stay where they are as they get older. About 78% of older American homeowners (mostly boomers) intend to remain in their current homes as they age, with only smaller fractions considering downsizing to senior communities or moving in with family. This trend has contributed to Nebraska’s housing shortage: fewer move-outs by boomers means fewer homes available for younger buyers. By keeping homes off the market, aging in place has kept inventory near historic lows and added pressure to prices.
For baby boomer buyers, these market conditions were a double-edged sword. On one hand, rising home values increased the equity that many boomers had in their current homes, giving them more resources for a new purchase. An owner who bought a Nebraska house years ago likely saw its value soar by 2023, which could be cashed out to help buy another home. This equity boost enabled some boomers to buy homes outright with cash. On the other hand, higher prices also meant that any boomer looking for a new house in 2023 had to pay more than they would have a few years prior.
Another notable market trend was the shift in who was buying homes. Nationally, baby boomers edged out millennials as the largest share of home buyers during this period. In the years prior, millennials had dominated the first-time buyer market, but by 2022–2023 boomers were making more moves. In 2022, boomers accounted for roughly 39% of U.S. home purchases (up from 29% the year before). By 2023–24, boomers were estimated to be 42% of home buyers nationwide, the highest of any generation. Nebraska likely mirrored this trend.
Urban vs. Rural Buying Patterns
When it comes to where Nebraska’s baby boomers are buying, trends differ between urban centers and rural communities. The state’s boomers are a diverse group ranging from farmers in the Sandhills to retirees in Omaha’s suburbs, and their buying patterns reflect local conditions.
Urban Areas: Seeking Convenience and Community
In Nebraska’s cities and suburbs, baby boomer buyers often seek convenience and amenities. Many urban boomers chose to move closer to family or services, but not necessarily into city high-rises. In fact, a lot of boomer moves in urban Nebraska kept them in suburban-style environments. Recent national data showed that older boomers (ages 70s) were most likely to purchase homes in a suburb or subdivision. We see this in Omaha and Lincoln, where retirees might leave a long-time house in a rural area or a large suburban home and purchase a smaller home in a nearby subdivision that’s easier to maintain.
Proximity to healthcare, shopping, and family are key draws. For example, a retiree from a farm might buy a house in Lincoln to be near medical facilities and grandchildren. In Omaha’s suburbs, local officials have recognized the need for more housing options that suit downsizing seniors. Plans in places like Papillion (a suburb of Omaha) have focused on building affordable, smaller single-family homes with less yard maintenance, explicitly aiming to help empty nesters and retirees find suitable housing without leaving the area.
Urban boomers also showed some interest in condos and townhomes, though single-family houses remained the top choice. A portion of older buyers opt for townhouses or condominiums in the city to avoid yard work and stairs. However, the vast majority of baby boomers buying in Nebraska’s urban counties still purchased detached single-family houses. Convenience can be achieved by choosing a smaller one-story house or a villa home (where an association handles lawn care) rather than a big two-story family house. There’s strong demand among Omaha’s older residents for “one-level, low-maintenance homes in walkable neighborhoods” as they age.
Rural Areas: Staying Close to Roots
In rural Nebraska, baby boomer home buying has its own dynamics. Many rural boomers have deep roots in their communities – they may have spent decades on a farm or in the same house. When these long-time residents decide to move, it’s often to downsize or to be closer to essential services. A common pattern is for an older farmer or rancher to sell the farm (or pass it to the next generation) and buy a house “in town.” Across Nebraska’s small towns, it’s not unusual to see retirees moving from an acreage to a house in the nearest town or county seat.
By relocating a few miles into town, they gain easier access to grocery stores, doctors, and social activities, while still staying in a familiar area. In fact, younger boomers (in their 60s) nationally were the most likely age group to purchase in a small town.
Rural Housing Challenges
Rural housing supply is a critical issue affecting these decisions. Many of Nebraska’s small communities have very limited housing inventory, especially of smaller, accessible homes suitable for seniors. New construction tends to lag in rural areas, so when boomers look to buy a downsized home, there may be few choices.
This has led to innovative projects aimed at addressing the “silver tsunami” of senior housing needs in rural Nebraska. For example, architecture students at UNL partnered with a nonprofit to design small, affordable dwellings that could be placed on infill lots in towns. These prototypes are meant to be “aging-ready” housing – compact, easy-to-maintain homes that older adults in any Nebraska town could live in. The initiative hopes to ease what one professor called an “extreme demand in small towns” for suitable housing for both the workforce and the elderly.
Despite these challenges, when the right home comes on the market, rural baby boomers are ready buyers. They tend to favor homes similar to what urban boomers want: single-story layouts, manageable yard size, and affordability. Some rural boomers have also moved to be nearer to children who left for the city, effectively relocating from one rural area to another or from rural to suburban areas in Nebraska.
Housing Preferences
What types of homes are baby boomers buying? For the most part, they are choosing traditional houses, but often smaller and more convenience-oriented than their previous homes. National statistics show that over three-quarters of baby boomer buyers purchase detached single-family houses. In Nebraska, this preference is evident across both urban and rural settings. Boomers generally like the privacy and familiarity of a single-family home. Many have owned such homes for decades and feel most comfortable in that type of property. However, the size and features of the homes they seek have shifted to match their stage of life.
Downsizing Trend
One notable trend is downsizing. As children grow up and move out, a lot of boomers no longer need (or want to maintain) a large house with extra bedrooms. A common goal mentioned by boomer buyers is finding a “smaller home with less upkeep.” According to the National Association of Realtors, a primary reason many boomers moved was the desire for a smaller home. This doesn’t always mean tiny; it often means a comfortable, one-story house that is easier to navigate and clean. Split-level or two-story houses are less appealing as owners anticipate mobility issues with aging. In Nebraska, ranch-style (single-level) homes are popular among retirees.
Boomers also appreciate homes with modern amenities and energy efficiency (to reduce utility bills and maintenance headaches). For example, an empty-nest couple might sell their old 2,500 sq. ft. farmhouse and buy a newly built 1,600 sq. ft. ranch in a 55+ development, trading unused space for updated design and single-floor living.
Alternative Housing Types
While stand-alone houses lead the pack, townhomes and condos form a significant minority of boomer purchases. These attached homes offer a low-maintenance lifestyle that attracts some seniors. In Nebraska’s larger cities, condos (especially in 55+ communities) can be appealing for those who want security, elevators, and services like snow removal. That said, only a small percentage of boomers go this route – in one national study, just around 2–3% of home purchases by boomers were in multi-unit apartment or condo buildings. Townhouses (which often have an HOA to handle exterior maintenance) were a choice for a slightly higher share, roughly 5–10% of older buyers.
Some boomers also show interest in new construction homes to avoid the repair issues that come with older houses. In fact, about 15% of younger boomers bought new homes in a recent survey, aiming to skip renovations and get move-in-ready properties.
Motivations for Moving
Why were baby boomers buying homes during 2018–2023? Their motivations often differed from those of younger buyers. Rather than job relocations or expanding families, boomers’ decisions were usually driven by lifestyle and personal considerations. According to national data focusing on recent boomer moves, the top reasons they gave for buying were to be closer to friends and family, to retire, and to find a smaller, easier-to-manage home. Nebraska’s boomers echoed these motivations.
One major factor was family ties. Many boomers chose to move in order to live nearer to their adult children or grandchildren. For instance, if a couple’s children settled in Lincoln or Omaha, the couple might sell their distant farm and buy a home in that city to help with grandkids and enjoy more family time. This is a powerful pull, especially as this generation enters retirement and may crave a stronger support network.
Retirement itself is another big motivator. Some boomers moved after retiring from their jobs, either to downsize or to relocate to a preferred area. Upon retirement, a person might decide they no longer need to live in the busy city where they worked and instead purchase a home in a quieter Nebraska town. Or conversely, they might move from a rural setting to a city to enjoy retirement conveniences. Retirement often frees people to choose a home based on where they truly want to live rather than where their job is.
Financial Advantages and Cash Buyers
Financing and economic factors also played a role in boomer buying trends. A striking aspect of this period is how financially prepared many boomer buyers were. Unlike younger buyers who typically need mortgages, a large share of boomers were able to buy with cash or minimal financing. Half of older baby boomers (70s) and about 40% of younger boomers (60s) purchased their homes entirely with cash. In other words, a majority of boomer buyers did not take out large new mortgages.
They could do this thanks to the equity they had built up over years of homeownership and the recent jump in home prices. By selling a long-held home, many boomers had substantial proceeds to reinvest. “Flexing their equity,” as one industry article put it, boomers used these funds to compete in the market. Paying cash gave them an edge in bidding wars and let them bypass high mortgage rates that became an issue by 2022–2023.
Even those who did finance often made large down payments. Only about 49% of older boomers nationally needed a mortgage at all, meaning the other half were mortgage-free. This trend was likely similar in Nebraska, as boomers here also benefitted from years of rising home values and generally prudent financial habits.
Comparison: 2018–2023 vs. 2008–2017
It’s insightful to compare the recent trends with the prior decade (2008–2017) to see how baby boomer home buying behavior has changed. The period from 2008 to 2017 encompassed the aftermath of the housing crash and the recovery years, which influenced all buyers, including boomers.
Shift in Market Share
One key difference is the share of home purchases made by boomers. In the late 2000s and mid-2010s, millennials and Gen X were the dominant buyer groups, whereas baby boomers made up a smaller portion of buyers than they do now. For example, around 2015–2016, millennials were often cited as the largest share of home buyers (nationally about 35–38%), and boomers were closer to 30% or less. By contrast, 2018–2023 saw boomers rebounding to become the top buying group.
Housing Market Conditions
The late 2000s were marked by the housing bust and Great Recession. Around 2008–2012, housing activity was very slow. Baby boomers who might have wanted to downsize often delayed their plans because home prices had fallen or they were underwater on mortgages. Many boomers were also still in their peak working years then (40s/50s), with kids at home, so they stayed put.
The period 2018–2023, in contrast, featured a booming market with rapidly rising prices (especially 2020–2022) and then sharply higher interest rates (2022–2023). Boomers in the recent period took advantage of the price boom to sell high and buy elsewhere, something not possible in the sluggish market of the early 2010s. Also, housing inventory was more ample in 2008–2017 in some respects – the bust had left many homes available – whereas by 2018–2023 inventory was very tight.
Life Stage Differences
In 2008–2017, many boomers were in their 50s and early 60s – often still working or just starting to retire. Their moves often involved job relocations or early retirement plans. Some even upsized in the mid-2010s if they had delayed a purchase due to the recession. By 2018–2023, the same cohort was older (60s to 70s) and more firmly in retirement life stage. Thus, downsizing and retirement relocation became far more prominent motivations in the latter period.
Conclusion
From 2018 through 2023, baby boomers significantly shaped Nebraska’s housing landscape. During these years, boomers increasingly became the ones buying homes – whether it was a retired couple downsizing to a bungalow in Kearney, or grandparents moving to Omaha to be near family. They generally sought single-family homes (often one-story and smaller than their previous dwellings) and favored locations that offered convenience, community, and affordability.
This period also highlighted the financial power of the baby boomer generation in real estate. Thanks to years of accumulated equity and a strong market, many could purchase homes with cash or large down payments. This gave them an edge and helped boomers weather challenges like rising interest rates and tight inventory that have stymied younger buyers.
As we look ahead, these trends suggest Nebraska’s real estate market will continue to feel the influence of the boomer generation for years to come. On one hand, more boomers will eventually choose to sell as they transition into retirement living situations or estates, which could gradually increase housing supply. On the other hand, many boomers are living longer and healthier, choosing to buy homes that could see them into their 80s or beyond, which means they may occupy those homes for a long time.
For communities, the focus will be on ensuring there are suitable housing options for an aging population – from affordable smaller houses to senior-friendly apartments – in both cities and small towns. Understanding boomer behavior is thus key to understanding the present and future of home ownership in Nebraska. The housing choices of this large generation will continue to reverberate through the market, influencing everything from home design and neighborhood development to market inventory and pricing.
References
- Baby Boomers Regain Top Spot as Largest Share of Home Buyers – National Association of Realtors (NAR) Newsroom
- Home Buyers and Sellers Generational Trends – National Association of Realtors Research Report
- Baby Boomer-Dominant Housing Markets [2024] – Construction Coverage
- Will a Silver Tsunami Change the 2024 Housing Market? – Go Home Realty (Blog)
- More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home As They Grow Older – Redfin News
- Nebraska Home Prices Surging Amid Strong Demand and Limited Supply – Federal Reserve Bank of Kansas City
- Atypical Nebraska Housing Project Aims at ‘Housing Crisis and Silver Tsunami’ – Nebraska Examiner
- The Nebraska State Legislature – Nebraska Demographic Background – Rutgers University CYPP
- Flexing Their Equity, Baby Boomers Are Driving the Housing Market – REALTOR® Magazine (NAR)
- The Downsizing Dilemma of Baby Boomers – Right at Home Blog
- Baby Boomers Dethrone Millennials To Reclaim Their Spot as Top Home Buyers – Michigan’s Thumb
- Average House Price by State in 2024 – The Motley Fool
