Baby Boomer Housing Trends- part 2
77 million Boomers, now that's a lot of influence on everything from the economy to politics, and to the housing market. Not all Boomer's are alike, so if you want to make money in the housing market, keep up with your knowledge of what this demographic wants.
8 out of 10 own their homes, 4 out of 10 own another property whether it's an investment property or a vacation home. In contrast, US Census numbers show only 6 out of 10 American's own their home.
The Baby Boomer generation should be divided into two subcategories. The younger boomers (ages 49-57), and the older boomers (ages 58-67). We need to look and determine the needs and wants of these separate groups. For instance, many in the older group of boomers (those closer to retirement) are not looking to upgrade their homes. Roughly, 6% of this group is looking to upgrade into a larger home, whereas 31% of the younger group are looking to upgrade into a larger home.
Many boomers are financially secure and are looking to take advantage of the lower interest rates and prices of today's housing market. However, the two groups are looking at very different investments. Of the older group 8 out of 10 are looking for less square footage and a easier property to maintain. Money isn't the driving factor here. Its that they don't want to be tied down to a property where they have to invest copious amounts of time (been there, done that). Think condo or townhomes. Only about half of the younger group wants this lifestyle change.
The next question is where are the boomers moving to? This is somewhat split between smaller, quieter community settings (adult communities), to urban/city settings where they can join in the excitement of restaurants, theaters, museums and other amenities that suit their lifestyle.
What isn't a question is what the groups are looking for within that community setting.
1. Quality health care with easy access.
2. Secure community environment.
3. A good quality of life.
4. Easy access to travel or ease of getting to a travel hub.
5. A moderate climate free of weather extremes.
6. Stable real estate values.
The take-away from this is that each group in this generation is looking for very different things in their homes. If the older group is moving towards smaller properties with less maintenance, then their investment or vacations homes may very well be going on the market soon. If the younger group is looking to upgrade into larger homes we should be looking at neighborhoods where we know the demographic is largely older and reaching out to them for future sales.
I myself live in one of these area's. I offer my services to assist in downsizing and upgrading whatever the case may be. Baby Boomer housing trends are something to be followed quite closely.