A huge financial shift is brewing that will change the lives of millions. Baby Boomers, accustomed to clinging tightly to a tight grip over economic power, are about to dole out an estimated $17 trillion in home equities down to their children. Commonly referred to as the “silver tsunami,” few transfers that have totaled this quantity in history-things are about to shift in a different direction for millennial and Gen-X financials if all goes in that direction as expected, or so a new projection claims. But what does this really mean to families and the economy at large?

Boomers’ Real Estate Wealth: A Legacy That Will Last 

Baby boomers, born between 1946 and 1964, have steadily gained wealth, in large part thanks to a hot real estate market. By 2024, they controlled half the nation’s homeowner equity-some $17 trillion-due to rising values over the past decade. The key question of what is next becomes particularly relevant as many boomers move into their 60s and 70s.

According to Freddie Mac, three-quarters of boomer homeowners intend to leave their homes —or the proceeds from selling them—to their children.

This inheritance couldn’t come at a better time for younger generations. High home prices and soaring mortgage rates have made homeownership a steep climb for many millennials and Gen Xers. Inheriting real estate may offer a rare chance for these groups to establish financial stability in a challenging market.

Downsizing Trend and New Living Arrangements

Equipping themselves for the next stage in their life journey, many boomers are becoming pragmatists. Of those looking to move, two-thirds plan to scale down by hunting out homes that will be far more manageable and inexpensive to manage than their current houses. Times are changing the face of modern families.

Interestingly, one survey found that, if given the choice, nearly 40% of boomer women say they would consider moving in with their children; for men, the figure was closer to 25%. For those interested in staying close but maintaining a measure of independence, accessory dwelling units-small homes constructed on family property-have begun to emerge as an attractive option. Aside from offering flexibility for various living arrangements, they allow for potential rental income and benefit both parents and kids financially.

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Confident but Cautious about Retirement

But despite facing the Great Recession and COVID-19 pandemic, baby boomers remain optimistic about retirement. About 68 percent of boomer homeowners surveyed say they are confident in their financial plans. That’s down from 81 percent in 2021, reflecting continued uncertainty in today’s economy.

Interestingly, most boomers aren’t planning to lean very hard on their home equity in retirement: Only 9% plan to tap the money through reverse mortgages or some other means. They’ll be more inclined to rely on savings and pensions and Social Security. So for most, home equity is a secondary resource rather than a primary one-a pillow to fall back on they’d just as soon not use and be able to leave to the kids.

A Larger Perspective: The Context of Wealth Transfer

This is an unprecedented wealth transfer in size, but it reflects other economic shifts throughout history. For example, boomers themselves benefited from a post-World War II economy that allowed them to buy affordable homes and build equity over decades. Today’s younger generations face tougher financial challenges.

This inheritance could narrow the gap, but it also opens up a Pandora’s box of questions: will they use the windfall to build wealth or just spend it? How they take the opportunity could shape not just their futures but the broader economy.

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Policy and innovation in action

To help with this transition, Freddie Mac and other organizations are stepping up with resources to help families unlock as much real estate wealth as possible. Programs that encourage property renovations or support ADU construction are among the tools at hand. These initiatives address both individual financial needs and larger housing market challenges, showing how innovation can make a difference. 

Conclusion 

It is also very personal. Besides being a financial milestone, the “silver tsunami” represents a turning point both for the families and the economy. With a whopping $17 trillion of home equity about to shift hands, millennials and members of Generation X have a singular chance to redefine their financial futures. But this wealth transfer is more than about inheritance; it’s about responsibility. For the recipients, the real challenge lies in converting that gift into lasting security and opportunity. As the “silver tsunami” rolls in, it’s crystal clear: this isn’t about passing on a house, but building a legacy for generations to come.

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