How Boomers Could Reshape the US Economy in Coming Years

Baby boomers are poised to reshape large parts of the U.S. economy in the coming years as their enormous wealth and changing needs redirect spending toward health care, housing, financial services and premium experiences, according to a new study from Moody’s Ratings.

Boomers, the generation born between 1946 and 1964, have accumulated more wealth than any age cohort in the nation, accounting for about 52 percent of total U.S. household net worth. In terms of housing alone, boomers own roughly 41 percent of all U.S. real estate assets, according to Realtor.com data, translating to an equivalent of nearly $19 trillion worth of property.

This massive wealth is largely a reflection of decades of homeownership, which many boomers acquired in the 1970s and 1980s, when housing was cheaper than it is now, considering historically high borrowing costs and still-rising home prices.

Read More on News

The median household wealth of boomers aged 65 and older stood at around $372,000 in 2022, compared with roughly $250,000 for the Silent Generation at the same age, in inflation-adjusted dollars. The Silent Generation refers to people born approximately between 1928 and 1945.

The concentration of wealth within this generation is even more striking. The wealthiest 10 percent of boomer households hold roughly 71 percent of the generation’s aggregate wealth, according to Moody’s.

That wealth is expected to create winners and losers across the country—and reshape the U.S. economy in the shape of the “silver cohort,” as researchers call it.

The ‘Silver’ Reshaping of the US Economy

America is aging, as boomers grow older and birth rates are in decline. The same is happening in much of the world: by 2060, according to Census Bureau data, about one-fifth of the global population will be at least 65 years old—double the 2025 share.

The graying of the country—especially that of the wealthiest generation in the nation—will increase national demand and spending for the kind of services and goods that aging boomers will need and want.

“Our silver spending report finds that aging primarily shifts the composition of spending rather than materially affecting overall growth,” Claire Li, vice president of credit strategy and standards at Moody’s Ratings, told Newsweek. “While spending per household declines with age, demand can still grow in certain categories as the number of older households increases and they hold substantial wealth.”

Moody’s expects affluent older Americans to support demand for private banking, wealth management, cruise travel, luxury hospitality, premium food and beverages, and health-related products such as hearing aids, supplements and elective procedures. Boomers’ widespread use of technology could also benefit companies offering tele-health, e-commerce, streaming and digital financial advice.

At the same time, mass-market businesses could face a tougher environment. Moody’s said midmarket retail, casual dining and standardized consumer products could experience weaker demand growth, while spending on apparel and vehicles typically declines after age 55.

The result is what the ratings agency describes as a “barbell” effect, with lucrative opportunities at the premium end and in industries directly linked to aging, but greater pressure on businesses occupying the middle of the market.

“For understanding the impact of demographic changes on economic growth, one needs to look at the bigger picture. Smaller successive generations mean slower growth in both the workforce and the consumer base. Productivity and technology can help economies produce more with fewer workers, but they cannot create additional consumers,” Madhavi Bokil, executive director of credit strategy and standards at Moody’s Ratings, told Newsweek.

“Older individuals continue to consume after retirement, supported in the case of baby boomers by substantial accumulated wealth, but they also continue to save and spending per household generally declines with age,” he added. “The ultimate impact on economic growth will also depend on productivity, immigration, labor force participation and how long people remain economically active.”

One of the biggest beneficiaries is likely to be health care. Among U.S. households headed by someone aged 75 or older, health care accounted for approximately 14 percent of consumption in 2024, compared with roughly 3 percent among households headed by someone under 25.

Staying in: Boomers’ Impact on Housing

America’s housing market could also feel the effects of boomers aging out. About 75 percent of Americans aged 50 and above say they would prefer to remain in their current homes as they age, according to data cited by Moody’s. This confirms experts’ suggestions that stubbornly high mortgage rates are keeping many U.S. homeowners in place, even boomers with houses much too large than they have use for.

Their staying in place is expected to support demand for home modifications, maintenance, HVAC (heating, ventilation and air conditioning) and roof replacements, smart-home health monitoring and accessibility services. Senior housing will also benefit as demand for later-life accommodation increases.

“Senior-owned homes are already coming to market: inherited homes were a record 7.4 percent of U.S. property transfers in 2025, and nearly 60 percent of sellers were 60 or older,” Li said.

“But mortgage-rate lock-in, low foreclosures and a strong preference to age in place should keep new supply gradual rather than a flood. The added supply could modestly improve affordability for younger buyers,” she added.

“The bigger risk is local: prices are already falling in about a quarter of markets, and areas with many seniors, weak population growth or high insurance and tax costs could see price pressure.”

Much of Boomers’ Wealth Will Change Hands, Eventually

A large amount of wealth will changes hands from baby boomers to their children and family, though the transfer will stay concentrated among higher-wealth households, according to Li.

“Our base case is about $32 trillion over 10 years and $140 trillion over 20 years. The range across scenarios is $103-179 trillion over 20 years. The low scenario assumes healthcare and care costs drain savings faster, people live longer, and more wealth goes to a surviving spouse first. All of that leaves less for heirs,” she said.

“The high scenario assumes the opposite. The roughly $76 trillion gap between the two shows how much these assumptions matter.”

Contact Newsweek editors on this story: Ben Kelly and Tony Phillips.

Update, 10/19/26 3:50 a.m. ET: This article was updated with comment from Claire Li and Madhavi Bokil of Moody’s Ratings.