The median age is rising in the Bay Area; what does this mean for home ownership?

A: The rising median age in the Bay Area will likely reshape the future of homeownership, leading to adjustments in housing preferences, intergenerational dynamics, and the exploration of alternative housing models.

As the population ages, we can anticipate a shift in housing preferences and needs. Older individuals may seek smaller, more manageable properties, potentially leading to increased demand for condominiums, townhouses and retirement communities. This could result in a slowdown in the demand for larger, single-family homes.

With older adults living longer and often requiring assistance or support, there might be a growing need for multigenerational housing options that accommodate extended families.

Another aspect to consider is the delayed entry of younger generations into the housing market, influenced by factors like rising housing costs and financial constraints. This delay may prompt a longer-term shift towards renting, shared housing arrangements, or alternative forms of homeownership, such as co-housing or cooperative housing models.

To navigate these changing dynamics, policymakers, real estate developers and community stakeholders should prioritize the development of affordable and diverse housing options that cater to the evolving needs and preferences of both older and younger residents.

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Original article published in the San Francisco Chronicle on July 30, 2023.