From the April 2009 issue of Boomer Market Advisor • Subscribe!

April 1, 2009

Boomer home equity plunges 45 percent

One in three boomers selling their home today will have to use out-of-pocket money just to cover the mortgage and transaction costs. The housing collapse has left boomers with little or no equity in their homes, and experts predict they'll need to rely more than expected on Social Security and Medicare in retirement as a result.

"The collapse of the housing bubble, which led to the current recession, has already destroyed almost $6 trillion dollars in housing wealth for homeowners," says Dean Baker of the Center for Economic Research in Washington, D.C. A February report from the Center found boomer households' median net worth fall by more than 45 percent between 2004 and 2009, from $172,400 to $94,200, relatively.

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