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Baby Boomers on the Move?

By
Real Estate Agent with Bradley Real Estate

I read an article in REALTOR® Magazine published June 13, 2016 on realtormag.reator.org, which talked about Baby Boomers and how their behavior in terms of moving or staying in their current housing situation will make marked impacts on the entire real estate industry.  The surveys taken show that 40% of "baby boomers" (defined in this article as adults over the age of 55) hope to move at least once more in their lives.  When you consider that 40% of baby boomers is close to 27 million homeowners, and this many people plan on moving one last time, that's a HUGE segment of the overall real estate market (one that I need to focus on and go hunt for in my database to stay relevant & at the forefront of their minds!) Of the baby boomers hoping to make another move, some plan on moving soon - (13%) plan on doing so within the next 4 years.

This market segment's actions will impact both the demand for housing and for new mortgage credit at least as far ahead as we can see.  When a segment of the market holds roughly 2/3rds of the nation's home equity ($8 trillion!) they are definitely a group to watch and reach out to in providing real estate services.  Almost a majority (49%) of these "moving" baby boomers plan on moving into a similarly priced or more expensive home - exactly 50% plan on moving into a less expensive home.  

One factor that jumped out at me was that over 3/4ths, or 76%, of all baby boomers are "confident that they will be financially comfortable in retirement."  That's such a large percentage, it is like the consumer confidence index beefed up on steroids!  

A second trend that I myself have been the beneficiary of states that close to 25% of baby boomers already have "helped someone financially with a down payment for a home."  This doesn't surprise me, with the rise of housing prices making first-time home buyers look high and low for any help towards their down payment - possibly to make their offer more competitive, or potentially just to get into any home.  

Finally, the type of homes they plan on living in is changing from today -- most will be seeking multifamily housing, whcih could cause a stir in zoning ordinances in many towns and suburbs, according to an article in Realtor Magazine entitled "Boomers' Demand Shifts to Change Real Estate," although this article was written over 2 years ago in January of 2014.  

What is the main takeaway?  You better have been nice to your parents' (if you're my age, or around 25-35 years old) friends, kept them on your marketing campaigns, made efforts to take them for coffee to discuss housing trends, and reinforced that you are their agent over multiple media (email, videos, handwritten note cards, phone calls, etc)!

Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I think all facets of people have a significant influence on our markets - from Baby boomers to dare I say it.... Milleniums.  Thanks for sharing Sean Scullion 

Jun 13, 2016 08:48 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Sean Scullion ,

Thanks for your recap on facets having a significant influence on our real estate market. I just subscribed to your blog..welcome to Active Rain..good contribution.

Jun 13, 2016 09:13 PM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for sharing this information.

Have a great Friday and an outstanding weekend.

Jun 17, 2016 12:36 AM
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Sean Scullion 

Nice post and you are right on, the boomers have been shaping hte market for the past decade. 

Jun 17, 2016 01:03 AM