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A Wall Street Journal article went viral recently, making the argument that once Baby Boomers retire, they will move into assisted living homes or senior communities. The end result? A glut of huge homes that Millennials either don’t want or can’t afford will suddenly sit vacant.
Not so fast, explains Hedgeye Demography analyst and renowned generational theorist Neil Howe.
Howe sat down recently with Hedgeye Housing analyst Josh Steiner to break down the trends of where Boomers are going now that they’re reaching retirement. He notes how few Boomers over age 65 live in senior communities or even want to be called senior or retired.
“Age 65 to 74, where most of the Boomers are, only 1.4% are in some form of institutional care,” Howe explains.
“That’s less than the percentage under 65. Okay, when you get to 85 and older, you get 10% [living in institutional care]. But we’re talking about the late 2040’s for Boomers here. So, you see the issue [with the thesis] here.”
Watch the clip above for more.