Baby boomers (born 1946–1964) have been a powerful force in Indiana’s housing market for decades. In recent years (2018–2023), their home buying and selling patterns have shifted compared to the previous decade (2008–2017).
Find out where Indiana’s baby boomers are moving, whether they are downsizing or staying put, and the motivations behind their choices. And how this influential generation are impacting Indiana’s real estate market.
Urban vs. Suburban: Where Are Boomers Moving?
Indiana has traditionally been a suburban-centric state, and many boomers continue to reside in or near the suburbs where they raised families. A large share of older Hoosiers are “aging in place,” remaining in their longtime homes rather than relocating.
Nationally, analysts observe that some retired boomers have indeed embraced city life – downsizing and moving into downtown condos or walkable neighborhoods to enjoy cultural amenities. However, this urban migration is more anecdotal than widespread. For most Indiana boomers, the draw of quieter communities and familiar surroundings still wins out.
The state’s data reflects this: Indiana is among the states with the lowest concentration of baby boomer homeowners, suggesting it hasn’t experienced a huge influx of retiring boomers from elsewhere. In other words, there’s been no mass exodus of Hoosier boomers to big cities; if anything, they’re largely staying in suburban or small-town Indiana, with only a modest trend of empty nesters moving downtown.
Downsizing or Staying Put?
One of the most notable trends in 2018–2023 is that many baby boomers are not downsizing as quickly as expected – they’re staying put in their existing (often large) homes. Surveys show a strong intent to “age in place.” In 2019, over half (52%) of boomers said they never expect to move from their current home. By 2024 that sentiment had grown even stronger: more than three-quarters plan to remain in their current home for the long term.
With adult children gone, many boomers have extra space (the average empty-nest boomer has two spare bedrooms). Yet instead of selling and downsizing, they often hold onto these houses. In fact, boomers today hold a disproportionately large share of big homes nationwide – nearly 3 in 10 large single-family homes are owned by empty-nest boomers, double the share owned by millennials with kids.
This pattern represents a shift from a decade ago, when downsizing typically occurred earlier in retirement. Now, the “pivot point” to move into a smaller home or condo is happening later in life (around age 80, whereas in 2005 it was around age 75). The bottom line: Indiana boomers in recent years have been more inclined to stay put in their longtime houses or delay downsizing until much later.
What About Those Who Do Move?
Not all boomers are staying in the same house forever – a segment is indeed making moves or life transitions. So where are those who relocate going? According to a 2024 survey of older homeowners, relatively few are selling the house and buying a traditional new home elsewhere. Instead, the top alternatives are retirement-focused options or moving in with family:
- 78% of boomer homeowners plan to stay in their current home as they age. (This is by far the most common plan, underscoring the aging-in-place trend.)
- 20% are considering a move to a dedicated 55+ retirement community (or have already done so), trading their old homes for senior-friendly neighborhoods and maintenance-free living.
- 10% anticipate moving in with adult children as a possible scenario, creating multi-generational households. Another 10% foresee maybe transitioning into an assisted-living facility in the future.
- Smaller fractions have other plans (e.g. a few percent might move in with friends or seek alternative arrangements), but these are minor in comparison.
In practical terms, this means relatively few Indiana boomers are listing their longtime homes for sale to downsize in the open market. Those who do downsize often opt for condos, senior apartments, or newly built cottages in 55+ communities rather than purchasing another standard single-family house. The majority are simply not moving at all, which has ripple effects on the housing market (fewer larger homes being freed up for younger buyers).
Motivations Behind Housing Decisions
Economic Factors
Why are so many boomers choosing to stay put? A mix of economic and lifestyle factors is at play. Financially, many Indiana boomers enjoy low housing costs in their current homes – either the mortgage is paid off or they refinanced at ultra-low interest rates in recent years. This gives them little incentive to sell; moving would likely mean paying today’s higher rates or higher property taxes on a new home. In fact, a recent analysis found most boomer homeowners either own their home free and clear or have a rock-bottom mortgage rate, so selling would actually cost them money in the long run.
Additionally, home values have risen significantly since 2018, and Indiana’s affordability means property taxes remain manageable, allowing boomers on fixed incomes to comfortably stay. Economists note that this dynamic – older folks hanging onto houses because it’s financially advantageous – has contributed to the housing inventory shortage, as fewer existing homes go up for sale.
Lifestyle Preferences
Lifestyle preferences also guide these decisions. After decades in one place, many boomers have deep community ties – neighbors, churches, favorite shops – that they’re reluctant to leave. Their current home may be larger than they need, but it’s also filled with memories and is familiar. Rather than downsizing, some are modifying their houses to age safely (installing grab bars, first-floor bedrooms, etc.) so they can stay longer.
On the flip side, those who do choose to move often cite positive lifestyle reasons: they might seek a smaller home with less maintenance (no more mowing the big lawn or shoveling snow), or they want to be closer to family and healthcare facilities. A subset of boomers is drawn to the vibrancy of city life – enjoying restaurants, arts, and walkability – which explains the trend of some empty nesters relocating to downtown condos or cultural districts.
Others prefer an “active adult” suburban community with recreational amenities and like-aged neighbors. In Indiana, for example, developers have introduced new 55+ subdivisions and senior apartment complexes in suburban Indianapolis and other cities to cater to this group.
Overall, the motivations boil down to this: boomers will move if it substantially improves their quality of life or family connections, but if the benefits aren’t clear, they’d just as soon remain comfortably where they are.
Regional Highlights in Indiana
Indiana’s baby boomer housing trends aren’t uniform across the state – certain regions stand out. Broadly, the state is not one of the top retirement magnets nationally (Florida or Arizona it is not). In fact, Census data show that baby boomers make up only about 34–35% of Indiana’s home-owning population, which is on the lower end compared to other states. This means Indiana’s housing market still relies heavily on younger generations, and boomers aren’t disproportionately dominating homeownership as they are in some older-population states. Many Hoosier boomers simply remain in the communities they’ve long lived in, rather than clustering in specific retirement enclaves. That said, a few Indiana areas have attracted attention for being especially boomer-friendly:
Notable Boomer-Friendly Regions
According to a nationwide analysis, states like Indiana (lighter shaded on the map) have among the lowest shares of homeowners who are baby boomers (around one-third). This reflects that Indiana hasn’t seen an outsized influx of retiree homeowners, unlike states such as Florida or Maine which have 40%+ of homes owned by boomers. Still, within Indiana, some regions are notable for their appeal to older residents.
Fort Wayne, for example, often ranks as one of the best places to retire in the U.S. thanks to its low cost of living and peaceful neighborhoods. Retirees in Fort Wayne enjoy affordability without sacrificing amenities – the city has a lively arts scene, plenty of festivals, over 80 parks and 100+ miles of trails for outdoor recreation. This combination of low costs and quality of life has made the Fort Wayne area a quiet magnet for boomers looking to downsize locally or relocate from pricier states.
Central Indiana, including the Indianapolis metro area, is another focal point. Indianapolis itself has seen some empty nesters moving downtown into condos along the Cultural Trail or trendy districts, seeking a walkable lifestyle. More commonly, though, Indy-area boomers are staying in the suburbs such as Carmel, Fishers, or Greenwood. These suburban cities frequently top “best places to live” lists and offer hospitals, shopping, and leisure activities that cater to seniors (many have parks, golf courses, and active senior centers). Developers around Indy have built upscale 55+ communities – essentially self-contained neighborhoods with clubhouses, pools, and lawn care provided – to attract boomers who want fewer chores but don’t want to leave the area.
In southern Indiana, Bloomington (a college town) has appeal for some retirees interested in educational and cultural opportunities at Indiana University. And in the scenic Brown County or around Indiana’s lakes, you’ll find boomers who have opted for a tranquil retirement setting close to nature. While these regional trends exist, it’s important to note they’re gradual shifts. No Indiana region is seeing a dramatic boomer influx or exodus; rather, the state’s boomers are generally staying put, with modest relocation patterns influenced by local amenities and family ties.
Statistical Trends and Shifts Over Time (2008–2017 vs. 2018–2023)
To truly grasp how baby boomer home buying in Indiana has changed, it helps to look at the numbers. The late 2000s through the 2010s (2008–2017) and the recent period (2018–2023) show some clear differences in boomer behavior:
Nationally (which reflects Indiana too), adults over 55 have grown to dominate homeownership. In 2008, Americans 55+ owned about 44% of owner-occupied homes; by 2023 they owned 54% – a historic high. This jump reflects boomers holding onto homes longer and younger generations buying later. Indiana’s overall homeownership rate even ticked up slightly as its population aged, because boomers are in their prime homeowning years. In the previous decade, the boomer ownership share was rising but had not yet peaked as it did by the early 2020s.
Boomers as Home Buyers
During the 2010s, millennials and Gen X were the biggest home-buying groups, while boomers mostly sold homes to downsize or moved less frequently. In 2019, for instance, millennials accounted for 38% of U.S. home purchases – the largest of any generation. But by 2022, there was a surprise shift: baby boomers overtook millennials as the largest group of home buyers, making up 39% of buyers (up from 29% the year before). This was partly because younger buyers pulled back in a hot market, while boomers, often armed with equity and cash, stepped in.
Compared to 2008–2017, when boomers’ share of buyers was smaller, the late 2010s and early 2020s have seen boomers staying active in the market longer – some even buying second homes or relocating within Indiana after retirement. The National Association of Realtors notes that in recent years both younger boomers (in their 60s) and older boomers (70+) have been buying homes for diverse reasons: to be closer to family, to have a smaller one-story home, or even upsizing to accommodate extended family.
Downsizing and Selling Trends
In the 2008–2017 period, the expectation was that boomers would create a wave of home sales as they retired. Indeed, many did sell their large family homes, but it happened gradually. The Great Recession around 2008 put many moves on hold – boomers who might have downsized often delayed plans because home values plummeted, and they waited for recovery. By the mid-2010s, housing had rebounded, yet as we saw, boomers weren’t rushing to downsize en masse. Compared to earlier generations, boomers have been downsizing later and less frequently.
The trend solidified from 2018–2023: rather than a huge sell-off, a lot of boomers refinanced and stayed. Realtors reported that older sellers in Indiana who did list their homes often sought smaller, more manageable homes nearby or moved into rentals, but a significant number simply took their homes off the market and stayed put when conditions didn’t suit them. Thus, the anticipated “silver tsunami” of boomer-owned houses flooding the market has been more of a slow trickle. This is a notable shift from the prior decade’s assumptions.
Housing Preferences Over Time
One subtle shift over time is in the type of housing boomers choose when they move. In 2008–2017, some boomers were moving straight from suburban houses to traditional retirement communities or snowbird condos in Florida. In 2018–2023, there’s greater variety: many opt for aging in place (staying put), while those who move might prefer “independent living” communities, or modern condos/townhomes with upscale amenities.
The concept of multi-generational living has also grown – it’s more common now for an aging parent to move into an adult child’s home or vice versa, whereas stigma around that was higher a decade ago. This reflects cultural and economic changes (high healthcare costs, desire for family closeness, etc.). In Indiana, multi-gen households have ticked up, contributing to fewer separate home purchases.
Also, builders have noted increased interest from boomers in custom-building a “right-sized” home (smaller than their old house but not tiny) in the last few years, whereas in the early 2010s the new-home market was more focused on first-time buyers and large family homes.
Summary of Key Shifts
In summary, compared to 2008–2017, Indiana’s baby boomer homeowners in 2018–2023 are moving less overall, holding a larger share of housing, and when they do move, it’s often at a later age or for targeted reasons (like a lifestyle community or to be near family). The economic upheavals of the late 2000s and the pandemic-era market of the 2020s both influenced these outcomes. Boomers have become an even more dominant presence in the housing landscape by staying in place and, in some cases, re-entering the market as buyers. This represents a significant evolution from the prior decade’s trends.
Conclusion
Baby boomers remain a key pillar of Indiana’s housing market, but how they engage with the market has evolved. The 2018–2023 period saw most boomers choosing stability – staying in long-time homes and aging in place – rather than the wholesale downsizing or sunbelt migration that some expected. A strong economy and rising home values gave them reason to stay, and community ties kept them rooted. Those who moved tended to favor convenience and lifestyle (city condos, 55+ communities, or proximity to family) over adventure or distant relocations.
Regionally, Indiana’s story is one of continuity: boomers are generally not flocking to new hotspots en masse, but places like Fort Wayne and the Indy suburbs have quietly adapted to meet their needs. Compared to 2008–2017, today’s boomers are a bit older, a bit more inclined to hold onto their houses, and surprisingly active as buyers when it suits them. These trends have wide implications – from housing supply for younger families, to the types of homes being built, to community planning for an aging population.
As Indiana prepares for all boomers to be 65+ by the end of this decade, understanding their housing choices is crucial. The data and trends outlined here provide a clear, sourced picture of how baby boomer home buying and homeownership patterns have shifted over time in the Hoosier State.
References
- The State of Indiana’s Housing Market 2020 – Indiana University Kelley School of Business.
- Empty Nesters Own Twice As Many Large Homes As Millennials With Kids – Redfin News.
- Redfin Survey: More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home as They Grow Older – Press Release, April 2, 2024.
- Baby Boomers Overtake Millennials as Largest Generation of Home Buyers – NAR Newsroom, Mar. 28, 2023.
- Baby Boomer-Dominant Housing Markets – Research report analyzing U.S. Census data.
- We’re Good Here: Boomers Are Staying Put Instead of Downsizing – Trulia Research Blog.
- Back to the City: Re-urbanization Movement Brings Opportunities – REJournals (Minnesota Real Estate Journal).
- The Cheapest Places to Retire in the US – Kiplinger Personal Finance.
