‘They Can’t Afford To Move Out’ — CEO Meredith Whitney Warns Most Baby Boomers Are Stuck In Place, Squeezing Millennials From The Real Estate Market

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Many baby boomers are remaining in their homes because they can’t afford to move, a trend that is contributing to a tighter housing market for younger generations, according to Meredith Whitney, chief executive officer of Meredith Whitney Advisory Group.

In a May 7 interview with Bloomberg TV, Whitney explained that cash-strapped boomers are aging in place, leading to a generational gridlock that’s limiting housing supply and hindering millennial homeownership.

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Boomers have bounced back as the largest home buying demographic in the U.S., accounting for 42% of all purchases in 2024, while millennials have dropped to 29%, according to the National Association of Realtors.

But this doesn’t mean most boomers are rolling in retirement riches. Whitney told Bloomberg that the common belief that all seniors are wealthy is misleading — many are borrowing against their homes just to get by. Whitney said that 44% of all home equity loans are being taken out by people aged 62 and older.

“That’s counterintuitive. It’s crazy, right?” Whitney said. She added that only about one in 10 seniors can afford assisted living, forcing the rest to stay put whether they want to or not. A study by the International Council on Active Aging proves her assertion.

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While boomers hang on to their homes — or scoop up new ones with equity-fueled cash — millennials are finding themselves priced out and inventory-starved. Rising interest rates, skyrocketing home prices, and stiff competition from cash buyers are major obstacles.

The tight housing market is pushing more millennials into long-term renting or back into multigenerational living. Compounding the issue is what Whitney called the “lock-in” effect — a term referring to homeowners with low mortgage rates who are reluctant to buy again at today’s elevated costs.