When we think about wealth in America, real estate almost always takes center stage. For many families, a home isn’t just a place to live—it’s the single largest asset they’ll ever own.

Today, the Silent Generation and Baby Boomers collectively hold nearly $25 trillion in real estate (Federal Reserve data). Over the next 20 years, much of this wealth will transfer to younger generations. But this shift isn’t just about passing down homes—it’s about taxes, lifestyle choices, and the changing way Americans approach aging.

The Step-Up Basis: A Tax Rule That Changes Everything

One of the biggest drivers of how real estate wealth is transferred comes down to a provision in the tax code called the step-up basis.

Here’s how it works:

• Suppose a couple bought their home for $200,000 decades ago.

• Today, that same home is worth $2 million.

• If they sold it while alive → they could face over $250,000 in capital gains taxes.

• If their heirs inherit it → the “cost basis” resets to $2 million. They can sell immediately with little or no capital gains tax owed.
  
  

👉 Translation: Inheriting real estate is often far more financially advantageous than selling it during one’s lifetime.

Why So Many Older Americans Choose to Age in Place

This financial reality helps explain a powerful trend: aging in place.

• 75% of adults 50+ say they want to remain in their homes as they grow older.

• Beyond comfort and familiarity, the financial implications matter:
  
  

• Selling a home = losing a tax advantage.
  
  

• Staying put = preserving wealth for heirs.
  
  

In other words, for many Boomers and Silent Generation homeowners, staying in their homes is both an emotional and financial decision.

What This Means for the Next 20 Years

We’re entering one of the largest wealth transfers in history, and real estate is at the heart of it.

• Generational impact: Younger generations will inherit trillions in property.

• Housing supply: Fewer older homeowners selling could mean tighter housing markets in some areas.

• Economic ripple effects: This transfer will influence not just families but also housing policy, taxes, and retirement planning across the country.

Key Takeaways

• Real estate wealth among Boomers and the Silent Generation = $25 trillion.

• The step-up basis gives heirs a massive tax advantage.

• Aging in place is about more than comfort—it’s also smart financial planning.

• The next 20 years will see a wealth shift that reshapes families, communities, and the economy.

If you’re wondering how these trends may impact your own financial planning, now is the time to start the conversation. Planning ahead ensures your real estate assets—and your lifestyle choices—align with the legacy you want to leave.

All my best,
Holly