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massive transfer of wealth from baby boomer homeowners to their children is on the horizon, with three quarters planning to leave their $17 trillion in home equity behind when they pass away. This "silver tsunami" will reshape the finances of younger generations, according to new research from Freddie Mac.

    Baby boomers have enjoyed a disproportionate share of real estate wealth since 2000, and this trend has only grown since the 2008 financial crash and the COVID-19 pandemic. A recent study found that 68% of baby boomer homeowners plan to "age in place," staying in their current homes for retirement rather than seeking new ones.

    The high value of real estate is a key factor driving this transfer of wealth, with median home prices almost doubling since 2004. Baby boomers are also likely to rely on other sources of equity, such as savings and pensions, to fund their retirements, further increasing the likelihood that they will leave their homes to their children.

    Experts warn that this trend is contributing to a shortage of suitable housing for younger generations, who may struggle to purchase homes in areas where baby boomers are choosing to stay. "The government isn't prioritizing building housing for seniors, which is further encouraging older Americans to stay put, exacerbating the inventory shortage," said Redfin chief economist Daryl Fairweather.

    As the youngest baby boomers approach retirement age, there is plenty of time for house values to appreciate further before younger generations inherit. The massive transfer of wealth that will result will likely reshape the finances of Gen X and millennial households, with significant implications for their economic security and housing options.