Older folks bringing big changes in California's home ownership rate

Housing's boom and bust over the past decade has left the the state with a home ownership rate of 55.9 percent, down only 2.5 points from its peak. But the real story is the generational shift that's unfolding before our eyes, according to a new USC study. A growing number of older homeowners are selling their properties and moving into rental units or assisted living complexes. Some are simply dying. More than 610,000 homeowners over 75 gave up their homes in the 2000s, compared with 561,000 in the 1990s and 385,000 in the 1980s. Even now, those sellers have not been offset by new homeowners at younger ages, and as more and more baby boomers retire, the imbalance will only become more significant. From the report by USC's School of Policy, Planning and Development:

The clear challenge for the future will be how to pick up the growing slack from the increased sell-off of older homeowners. "Who is going to buy your house?" has become an important question for all of us. Policy solutions to strengthen homeownership are two-fold. On the supply side, the sell-off by older homeowners can be slowed by making communities more elder friendly in their services and urban design (promoting greater walkability and sociability). This will help people stay in their homes longer and delay the sell-off. On the demand side, the home buying capacity of the younger generation needs to be strengthened by programs to improve job skills and promote higher education. Cultivating a stronger base of future home buyers will help the older generation as much as the young. This partnership needs to be strengthened between older future home sellers and younger potential home buyers.