New Jersey is about to face one of the most significant shifts in its housing market and it’s not interest rates or zoning laws. It’s demographics.
Baby Boomers, born between 1946 and 1964, currently make up a massive portion of NJ homeowners. According to census data, nearly 40% of all homeowners in New Jersey are aged 60 or older. As this group ages, retires, downsizes, or passes away, the real estate landscape is going to change fast.
We’re calling it the “Silver Tsunami,” and it’s already starting to roll in.
📊 What Harry Dent Calls the “Demographic Cliff”
Economist and author Harry Dent, in his book The Demographic Cliff, warns about the massive economic impact of aging populations. Dent argues that as Baby Boomers retire and reduce spending, it creates a deflationary force on the economy especially in sectors like real estate.
Boomers typically hit their peak spending between ages 46 and 50. After that, they begin to downsize, cut back, and shift toward conservative financial strategies. This mass behavioral shift is already influencing housing markets across the U.S.—and NJ is especially vulnerable given its aging homeowner base and high cost of living.
According to Dent:
- The aging population leads to a decrease in household formation
- As Boomers sell, more inventory hits the market, often faster than it can be absorbed
- This can create price stagnation or softening, especially for outdated or large suburban homes
NJ is a prime example of this trend, as Boomers are now transitioning out of long-held properties that younger generations may not be able to afford or even want.
🏠 Boomers Own a Lot and It’s Coming to Market
These are the homeowners who’ve been in their properties for decades. Their homes have appreciated. Many are mortgage-free. And now, their adult children live out of state, they’re dealing with mobility or health issues, or they simply don’t need the space.
Here’s what we’re seeing:
- More listings from retirees downsizing: A 2024 survey found that 24% of older New Jersey boomers have recently downsized or plan to downsize. In Bergen County, popular downsizing destinations like Ridgewood, Hackensack, and Fort Lee have seen an uptick in listings from longtime homeowners.
- A growing number of probate cases as owners pass away: In Bergen County, probate activity remains steady, with the Surrogate’s Court handling hundreds of new estate filings each year. The backlog in processing these cases highlights just how many inherited properties are quietly transitioning to the market.
- Increasing reliance on reverse mortgages to fund retirement: Bergen County, with its high property values, has been a hotspot for reverse mortgages. As of early 2024, homeowners aged 62+ in towns like Paramus, Teaneck, and Englewood have increasingly used HECM loans to tap into their home equity without selling. As of early 2024, over 560,000 NJ homeowners aged 62+ are eligible for reverse mortgages, and over 650 HECM loans were originated in a 12-month span.
🧾 Probate & Inheritance: What Happens to Their Homes?
When a homeowner passes away, their property often goes into probate, especially if there’s no living trust or transfer-on-death deed. Probate can take months and delay the ability to sell. Heirs are often left juggling legal paperwork, emotional decisions, and carrying costs like taxes and insurance.
As a hybrid real estate agent and investor, I work with estate attorneys and families across NJ to navigate the probate process and help heirs understand their options whether it’s a traditional sale, a fast investor close, or cleaning out a hoarder-level property.
🏥 Nursing Homes, Health Issues, and Selling for Care
Another rising trend: Boomers moving into assisted living or nursing care.
These transitions often happen quickly and require cash. Families need to sell the home fast to cover the cost of care, which in NJ can average $6,000–$12,000 per month.
That urgency makes as-is cash offers, bridge loans, or creative finance options more attractive. NJ House Partners helps families evaluate all routes to avoid unnecessary stress.
💸 Reverse Mortgages: What Heirs Need to Know
Many aging NJ homeowners have taken out reverse mortgages, loans that don’t require repayment until the owner dies, sells, or moves out.
Once that happens, the balance becomes due. Heirs have three options:
- Pay off the loan to keep the home
- Sell the home and repay the loan from proceeds
- Let the lender foreclose
This can be overwhelming. We offer free equity assessments and connect families with mortgage servicers or estate attorneys to help guide next steps.
📈 What This Means for the NJ Housing Market
The influx of boomer-owned homes coming to market in the next 5–10 years will:
- Boost inventory (especially estate sales and fixer-uppers)
- Provide opportunities for younger buyers priced out of new construction
- Fuel the demand for estate clean-outs, probate attorneys, and investor buyers
But it will also come with challenges:
- Homes that haven’t been updated since the ’90s (or earlier)
- Properties left vacant or unmaintained
- Family disputes over inheritance
🧠 Bottom Line: Be Ready for the Shift
Whether you’re a baby boomer thinking about your next move, or the adult child of one, it’s smart to prepare:
- Have estate plans in place
- Understand the value and condition of the home
- Know the probate and inheritance process
If you’re looking for local insight, creative solutions, or just a judgment-free consultation, I’m here.
📞 Kevin Hill | 201-214-1349
🌐 www.njhousepartners.com