Hug a Baby Boomer Today!

                                                                    Hug a Baby Boomer Today!

As realtors, we connect with people from all walks of life, transcending age, income, educational levels, cultural backgrounds, and ideologies.   It is imperative that we gain a deeper understanding of each other, and one way to do so may be to examine generational differences. 

                                                      

                            So, let's talk about the Baby Boomers!  Who are they? 

Baby Boomers were born between 1946-1964, creating a large increase in birth rates due to World Wars (WWII, Vietnam, Korean).  There are 78 million Boomers alive today, and they represent the vast majority of the work force. 

Boomers grew up at a time of dramatic social change which made deeply profound impressions on them.  They lived through several World Wars, the Civil Rights Movement, the Sexual Revolution, the Watergate Scandal, the assassinations of President Kennedy and Martin L. King, Jr., the Women's Movement, just to name a few).  Older generations were not faced with this rapidly changing life style, and newer generations have lived with this society all their lives. Baby Boomers think they can change the world.

As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% of them had a household income of at least $100,000 per year.

Boomers tend to be in a state of denial regarding their own aging and death.  It is often said, when dealing with a Baby Boomer, do not talk to their chronological age, talk to their self image, keeping in mind, they defy generalizations, just as they defied convention their whole life.

Key Characteristics of Baby Boomers:  Experimental, Individualistic, Free Spirited, Social Cause oriented, Workaholics, Hardworking, Competitive, Active, Dedicated and Loyal.

 

                                                        

What does this mean to Realtors?

•·         According to the National Association of Realtors, about 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.

•·         Today's newest retirees also seem less likely to prefer age-restricted communities than their already-retired predecessors.  They prefer being close to their family.  They also prefer warmer climates around water and a lower cost of living.

•·         The biggest increase in internet use since 2005 can be seen in the 70-75 year-old age group. Older generations use the internet less for socializing and entertainment and more as a tool for information searches, emailing, and buying products.  HOWEVER, Baby Boomers prefer "face time" over email and texts when it comes to communication.

 

                                                               

•·         The nation's 78 million Baby Boomers ought to be the most sought-after demographic cohort for American marketers.   As a group, they are the most affluent Americans, with three quarters of the nation's financial assets and an estimated $2 trillion in disposable income annually.  They earned all that money by being workaholics, and they expect others to work just as hard.  Slacker Realtors, need not apply!

The Takeaway:

The Baby Boomers have had and will continue to have a significant impact on the real estate market.  As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments and design strategies that target the needs of this enormous population cohort.

  

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