Boomers on Lockdown: The $84 Trillion Wealth Transfer on Hold

Lisa Mailhot  |  January 30, 2025

Buyers

Boomers on Lockdown: The $84 Trillion Wealth Transfer on Hold

 

For years, millennials and Gen Xers have been anticipating the “Great Wealth Transfer.” With baby boomers holding an estimated $84 trillion in wealth, including $17 trillion in home equity, experts forecasted a significant generational shift in assets. However, it turns out many boomers are far from ready to part with their money and properties.

A new survey from Charles Schwab found that 45% of boomers want to "enjoy my money for myself while I’m still alive." This puts a significant delay on the projected inheritance timeline, stretching wealth transfers to potentially another 20 to 25 years.

Why Baby Boomers Are Holding On

Economic shifts over the past decade, coupled with increased healthcare costs and life expectancy, are causing boomers to rethink giving away assets early. Many need their wealth to support their extended retirement. Research from Edward Jones reveals that boomers plan to distribute only around 40% of their wealth while alive, leaving the majority to be passed posthumously.

Real Estate: The Future Inheritance Battleground

Boomer homeowners still plan to eventually pass their real estate assets to their children. In a 2024 Freddie Mac survey, three out of four boomers expressed their intent to leave their homes or the sale proceeds to their heirs. However, this won't happen immediately, with experts estimating a gradual decline in boomer-owned homes over the next decade—from 32 million in 2022 to 23 million by 2035.

The Generational Divide on Wealth Transfer

Interestingly, the mindset toward wealth distribution differs between generations. According to Schwab, younger generations—millennials and Gen Xers—are more inclined to share wealth while alive. Financial planners like Michelle Crumm emphasize the importance of early transfers, noting that “it’s the 20- and 30-year-olds who need it the most.”

In contrast, the upcoming Gen Z and Gen Alpha generations may adopt entirely different approaches to legacy planning. Schwab's findings suggest a cultural shift as younger Americans start reshaping estate planning priorities.

Implications for the Housing Market

The delayed transfer of boomer-owned homes could mean fewer properties entering the market in the short term, impacting housing supply and affordability. However, over the next decade, millions of these homes will inevitably hit the market, creating opportunities for younger buyers and investors.

Bottomline

The much-anticipated "Great Wealth Transfer" is unfolding slower than expected as baby boomers prioritize financial security during retirement. Yet, with real estate holding a key role in future inheritances, the next decade will see significant shifts in the housing market. Whether you’re planning your next move or investing in your future, having a strategy is key. Let’s connect to discuss your next steps toward living in Orange County!

 

 

Reference: Sartore-Bodo, Dina. "Boomers Are Refusing To Give Their $84 Trillion in Real Estate and Wealth to Their Children." Realtor.com, Jan 30, 2025.

RECENT BLOG POSTS

Why Tiny Home Prices Are About to Surge—And What It Means for Orange County Buyers

New tariffs on Chinese imports are already causing sharp increases in tiny home and ADU prices. In high-cost regions like Orange County, this could significantly impac… Read more

The Hidden Risk in Buyer Love Letters (And How to Avoid It)

Buyer love letters might tug at heartstrings, but they can also tread dangerous legal ground. Learn the top three ways these letters could violate Fair Housing laws — … Read more

When Repairs Go Wrong: Can You Legally Withhold Rent in California?

Renters have more power than they think when it comes to repair issues in California. This blog breaks down your rights as a tenant, including when and how you can leg… Read more

Midwest Home Prices Surge Fastest in the Nation

The Midwest is on fire—and we’re not talking weather. Home prices in cities like Milwaukee and Detroit are soaring due to tight inventory and high demand. This blog di… Read more

Why Buyers Need Over $52K More Than Renters—and the Gap’s Growing

The income gap between renting and owning a home has surged to over $52,000 in 2025. While rent increases have slowed, home prices and mortgage rates remain high, maki… Read more

Gas Prices Drop, Inflation Slows—Here’s What That Could Mean for Your Mortgage

Inflation cooled in March thanks to falling gas prices, providing a temporary sigh of relief for mortgage markets. While rates aren't dropping just yet, lower pressure… Read more

Why Homebuyers Are Turning to Stocks for Their Down Payments

A new Redfin survey reveals that 1 in 5 homebuyers plan to sell stocks to fund their down payment. As market volatility shakes confidence, homeowners and renters alike… Read more

Why Strong Jobs Aren’t Sparking a Housing Comeback

Despite a strong March jobs report, new tariffs and rising economic uncertainty are casting a shadow over the housing market. Here’s how these national trends could pl… Read more

New MLS Rules Let Sellers Choose How to List

The National Association of Realtors® just introduced a new companion to its Clear Cooperation Policy: Multiple Listing Options for Sellers. This update offers sellers… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most