Baby Boomers and Real Estate
By John Occhi
The great thing about being a REALTOR is I belong to the National Association of REALTORS and one thing I can count on them is they like to study issues. However, what I don't get is why they want to charge me to access the study that I subsidized with my very expensive annual dues, but I'll save that rant for a more appropriate place.
The NAR commissioned the folks at Harris Interactive to study "Baby Boomers" and the effect they have on the real estate market and how their retirement plans will and do affect the market. Some very interesting observations came out of this study that I would like to share.
According to the study, of the 78 million ‘baby boomers' most still consider themselves far from retirement, even though they are currently between the ages of 42 and 60. Incidentally, the "Baby Boom" generation is the single largest generation ever, in American History.
This is the current financial situation of the Boomers surveyed (approximately 2000 of us):
19% are renters
37% have just enough to get by
17% say they are having financial difficulty
On a more positive note
13% own land
8% own Rental Property
7% own a vacation home
2% own commercial real estate
3% own some other kind of real estate
What I think is cool is that 40% of vacation home owners are planning on converting their 2nd homes into their primary residence when they retire. Boomers are definitely more active in the 2nd home market with 57% of all vacation property and 58% of all rental property being held by Baby Boomers!
If you are interested in reading more about this massive body of Americans and how they are affecting the real estate market, please check out the article originally published by NAR, here: http://www.realtor.org/press_room/news_releases/2006/baby_boomer_study_06.html
Have a Blessed Day,