Don’t count on baby boomers and Gen Xers to sell their homes any time soon, according to a survey by Bank of America.

A new survey by the bank found that 70% of homeowners ages 45 to 76 plan to or have retired in the home they already own.

The decision by the older generation to stay put in their homes could be significant for the already depressed residential home inventory because Gen X and boomers account for 70% of the 84.7 million owner-occupied homes in the U.S., BofA said, citing a 2021 consumer trends report by Zillow.

Recent data by Reator.com showed a 50% drop in  active home listings, from 1,468,901 units to 732,276 units between July 2016 and September 2022.

More than three-quarters of those staying in their homes said they see no reason to move, and the other 22% indicated that they have put a lot of work in their homes and would rather not move. The 2022 Homebuyer Insights Report by BoFA pointed out that 61% of Gen X and 69% of boomer homeowners have renovated or remodeled their homes to fit their lifestyles.

BofA said that the motivation for homeowners to hold on to their homes is also because of market conditions. “The current housing market shows that sellers don’t want to give up their low mortgage rates to purchase new properties,” the bank said, noting that  95% of current mortgage holders benefit from loans with rates of 5% or less. “Similarly, older homeowners may be less inclined to sell and rent as this adds a fluctuating cost which can be challenging for retirees with a fixed income.”

Noteworthy is that Bank of America Institute found that median rent payments increased by 8.1% year-over-year in September.

When asked what they would do if they retired today, considering market conditions, 32% of the pre-retirees said they would remain in their current home to avoid today’s high home prices and interest rates, 20% said they would stay in their home because their mortgage payment is low, or they have already paid it off (20%); and 10% said they would sell their home, either to find a home with a lower cost of living or to leverage the equity they have  built in their home.

And although boomers and Gen X are not inclined to sell their homes, they are supportive of the next generation in their homeownership quest. Thirty-eight percent said they plan to give the next generation money to buy a home or give them their home to sell; 36% said they would pass down their home for the next generation to live in; and 12% said they plan to offer to live together in a multigenerational space.

The study was conducted in October by Ipsos and included 1,554 adult homeowners ages 45 to 76.