Across Michigan, and particularly in Ann Arbor, a quiet shift in the housing market is creating a major ripple effect. Baby Boomers, many of whom live in family-sized homes with three or more bedrooms, are choosing not to sell, even as their households shrink to one or two people. Empty nester Baby Boomers own twice as many three bedroom or larger homes, compared to millennials with kids.
The Big Picture: Why Boomers Are Staying Put
Several overlapping factors help explain why so many homeowners in their 60s and 70s are choosing to age in place.
Nowhere to Go
Many Boomers would like to downsize into smaller, more accessible homes. But those properties, especially ranch-style homes or condos with first-floor living, are in short supply. Without clear alternatives, many decide it is easier to stay put than to face the stress and uncertainty of finding a new place that meets their needs.
Michigan’s Property Tax Structure
Michigan’s Proposal A, passed in the 1990s, has unintentionally discouraged many older homeowners from moving. The law limits the rate at which property taxes can increase while a homeowner remains in their house. However, when a homeowner moves, their property taxes are re-calculated based on current assessed market value. That means a smaller home might come with a significantly higher tax bill than the larger one they already live in.
Emotional and Physical Barriers
For many Boomers, their homes are more than just real estate. They are places full of memories, family milestones, and personal history. The idea of sorting through decades of belongings and preparing a home for sale can feel daunting, both emotionally and physically. This is especially true for those without nearby support or with health limitations. 54% of Baby Boomers say they will never move.
Financial Considerations
Many Boomers own their homes outright, having paid off their mortgages. That financial security is hard to give up. Downsizing may not even result in major savings, particularly in a market where smaller homes are still expensive and interest rates are high. Add to that the costs of moving, closing fees, and potential renovations to make a new home livable, and the move may not make financial sense.
Lifestyle and Community Ties
For some, the motivation to stay is as much about comfort and familiarity as it is about cost. Long-standing relationships with neighbors, proximity to favorite coffee shops or parks, and access to trusted healthcare providers make their current location feel irreplaceable.
Local Context: What’s Happening in Ann Arbor
While there is no exact number on how many Baby Boomers in Ann Arbor are living in oversized homes, available data paints a clear picture. In the Ann Arbor metro area, approximately 27.6 percent of three-bedroom or larger homes are owned by Baby Boomers. Many of these homes now house just one or two people. At the same time, Ann Arbor’s average household size has decreased to around 2.2 people per household. Read more about this on Axios.com
There is also an acute shortage of homes suitable for downsizing, particularly in central neighborhoods like Burns Park, Water Hill, and Lower Town. This mismatch between supply and demand is leading to a bottleneck, with younger buyers unable to purchase larger homes and older owners unable or unwilling to move into something smaller.
What Can Be Done?
For homeowners who are open to selling but feel stuck, early planning and the right support can make all the difference.
One solution is to work with a real estate team that understands the unique needs of long-time homeowners. Some teams offer access to off-market listings, which can include highly sought-after ranches or single-story homes that never appear on the MLS. Others provide guidance through the entire process, from coordinating downsizing services to handling the logistics of listing and showing a home.
For Boomers who are not ready to move immediately, creating a plan can reduce stress and make future transitions easier. Whether it is organizing the garage, updating key areas of the home, or getting a current market evaluation, small steps today can help avoid rushed decisions later.
Here’s How We Can Help
- We Find Homes Off-Market: You’re not limited to what’s on Zillow. Our team can help you find homes that aren’t even listed yet especially ranches and other in-demand options.
- We Help You Win the Bid: In a competitive market, you need an agent who knows how to position your offer. Our strategy helps buyers win without overpaying.
- End-to-End Support: From connecting you with vetted local contractors to providing decluttering resources, we’ll help you get your home market-ready, whether that’s now or years down the road.
Check out our downsizing and decluttering guide here.
Learn more about downsizing here.
The Bottom Line
Preparing for a move takes time – often years. But starting to plan early, whether that means preparing your home in your 50s or simply exploring your options, makes the transition smoother, less stressful, and more successful.
We are here to help. Please reach out with any questions you have regarding preparing for a move even if your move is years away.
