A “silver tsunami” is coming to Florida’s housing market as more Boomers pass away in the coming years with Orlando being one of the top areas impacted, according to a study by Zillow.
Over the next 20 years more than a quarter of the nation’s currently owner-occupied homes will be on the market as owners pass on, the study showed.
“If the number of future retirees choosing to make these places home during their golden years fails to match generations past and local housing demand fades, these areas may end up with excess housing,” Zillow reported.
The most impacted cities are areas with large retirement hubs and regions of young residents including Orlando, Miami and Tampa, Zillow reported.
Tampa is estimated to be the most impacted city in America by the “silver tsunami” with Miami taking the third spot and Orlando in fourth.
About 35 percent of Orlando’s housing market is owner-occupied with 10 percent of its population being adults 65 and older, according to the U.S. Census.
Between 2007 and 2017 there were about 730,000 U.S. homes released into the market each year by seniors aged 60 and older, Zillow found. That number is expected to rise to 920,000 homes between 2017 and 2027.
The surge of upcoming market supply could be very helpful for upcoming challenges facing home developers.
Construction production is at a historical low as developers are struggling to keep with demand in metropolitan area where accessing capital has been an issue, coupled with construction labor issues, Zillow reported.
The release of homes in high-demands area could stimulate greater construction of small and mid-sized multi-unit properties as developers acquire more empty lots.
“The construction industry may be bracing for a tsunami of old-new housing supply that crowds out new development, but renovation could be where the real silver is at,” Zillow reported.
Author: Joe Mario Pedersen
Source: Orlando Sentinel: Orlando housing: As Baby Boomers die, area may have too many excess homes