For decades, retiring to sunny states like Florida and Arizona seemed like a foolproof plan for Baby Boomers.
Warm weather, retirement communities, and the promise of a solid investment in real estate made these areas irresistible.
But now, many older Americans are discovering that their retirement dreams are colliding with an unforgiving housing market.
The homes they bought with the expectation of turning a tidy profit are sitting on the market with few takers.
Buyers from younger generations—Gen X and Gen Jones—aren’t stepping up like Boomers assumed they would.
Rising living costs, job insecurity, and delayed retirements are keeping these potential buyers away.
A Reality Check for Retirees
Chey Eisenman, a housing and relocation advisor, says many retirees are only just beginning to grasp how drastically things have changed.
“Who are the Boomers expecting to sell their retirement homes to?” she asked in a recent TikTok video.
Boomers, now between 62 and 80, assumed that demand for their Florida and Arizona homes would never fade.
They expected to sell later at a profit—but the reality is proving far less rosy.
Homes are often overpriced compared to what the market will bear, leaving sellers frustrated and anxious.
The Next Generation Has Different Plans
Eisenman notes that the upcoming generation of retirees is looking elsewhere.
Instead of flocking to Florida or Arizona, these buyers are exploring international options like Costa Rica, Panama, Portugal, and Mexico.
“Many are not even looking at Florida,” she says.
“They have completely different priorities and are seeking retirement experiences abroad.”
Even Americans who had planned to retire in the U.S. are facing setbacks.
Layoffs and employment challenges have forced some to pause their home purchases, further shrinking the pool of buyers for traditional retirement properties.
Retirement Communities at Risk
The situation has raised questions about the future of large Boomer-centric communities like The Villages in Florida.
Eisenman wonders who will live in these neighborhoods once the current residents are gone.
“Is it going to become low-income housing eventually? Will these homes go underwater?” she asked.
Despite these challenges, many Boomers remain in denial about the state of the market, surprised that their homes aren’t selling as easily as they imagined.
Housing Market Struggles in Florida
Florida’s housing inventory is at record highs, particularly in active adult and condo communities, leaving properties languishing unsold.
Jeff Lichtenstein, a local realtor, notes that some condos are underwater and may ultimately be sold to investors or demolished.
Condo values in Florida have dropped nearly 10% over the past year, the steepest decline since 2009.
High homeowner association fees, rising insurance costs, and limited insurance availability are driving sales, adding further strain on the market.
Big Homes Are Less Appealing
Boomers with large suburban homes are also encountering difficulties.
Many are shocked to learn that younger buyers are not interested in outdated, oversized properties.
“Boomers think their 90’s aesthetic suburban monster home is worth more than it is,” Eisenman explains.
“Those who can afford a home prefer newer construction or smaller, updated spaces closer to cities or first-ring suburbs.”
Middle-class retirees are additionally struggling with extra costs from hurricanes and other natural disasters, sometimes facing insurance hurdles that push them to sell.
Younger Generations Are Redefining Retirement
Younger Americans are redefining what retirement looks like.
Traveling abroad, downsizing, and prioritizing experiences over large homes are now common choices.
Climate concerns also make places like Florida less attractive to these buyers.
“Gen X and Gen Jones are looking for varied experiences, sometimes in other countries, and are avoiding states that are at high risk for climate events,” Eisenman says.
As a result, many Boomers may find themselves sitting on homes that no one wants, forcing a rethink of retirement strategies and financial plans.
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