The “Silver Tsunami” Is Already Hitting Shore

The “Silver Tsunami” Is Already Hitting Shore

Much has been written about the coming “Silver Tsunami” — the unprecedented wave of wealth transferring from Baby Boomers to younger generations. But from where we sit in Washington, DC, this isn’t a future event. It’s already underway.

More and more of our buyers are receiving help from parents or grandparents, whether to bridge an appraisal gap, strengthen a cash position, or make a competitive offer in a tight, high-end market. With trillions of dollars expected to change hands over the next two decades, we are living through the largest generational wealth transfer in history — and real estate is one of the most powerful and tax-efficient ways to do it.

Homes provide leverage, long-term appreciation, and the opportunity to pass wealth outside of traditional estate planning structures. Done thoughtfully, these strategies can help younger buyers get established while keeping tax friction surprisingly low.

Some of the most effective approaches we’re seeing:

• Annual gifting toward down payments: Parents and grandparents can gift up to the annual exclusion amount per recipient, per year, without using lifetime exemptions — often stacking gifts across spouses.
• Intra-family loans: Loans at IRS-required minimum interest rates can be far cheaper than commercial financing and keep assets within the family.
• Buying and gifting equity: Purchasing a property and later gifting partial ownership interests can shift appreciation to the next generation.
• Co-buying or guarantor arrangements: Purchasing a property and later gifting partial ownership interests can shift appreciation to the next generation.
• Early inheritance via real estate: Providing help now, when it meaningfully changes life outcomes, rather than later through an estate.

The Silver Tsunami isn’t just a demographic trend — it’s reshaping today’s housing market, one family decision at a time.