In Part 1 of this 2 part series on Baby Boomers-Real Estate-Trends, we looked at 3 of the current trends:
1. They want to be Independent
2. Boomers are into family and want to be near them.
3. Boomers are becoming money conscious.
In Part 2 we will look at 4 more trends:
4. Boomers See a Need to Reduce Housing Expenses.
We will find that Boomers for the main part are home
owners and have been for several years.
According to a report by Fannie Mae, Baby Boomers
possess tremendous wealth, over $6 trillion in home
equity. Yet many will face financial insecurity in
The majority of their wealth comes from owning a
primary residence. So they know that their largest asset
is in their home.
To reduce their housing expenses they are looking at
"downsizing" a term that does not always convey a
positive image for them. Thus, I refer to it as "rightsizing"
which means they will look for a home that fits their need
and their wallet.
Part of their motive is to free up some of the equity to be
able to travel and enjoy their family. They also look ahead
to the possible medical costs that will arise as they age.
5. Boomers look for a home that has modern conveniences.
They want a home that is easier to take care of and will
not require all their energy and time.
They may find a house that is older but has the look they
would like but it needs to be upgraded and possibly
modified to meet future needs. Most are going to look for
a single story house to eliminate stairs.
They may want a nice upgraded kitchen and energy
6. They would like a Neighborhood that is user friendly.
They want to have some stores close by, even prefer to
walk or bike to them. They like to walk for exercise and
want a neighborhood that is pleasant and enjoyable for
Boomers have caught on to the coffee shops and pastry
shops and enjoy walking or biking to spend some time
in a place where they can socialize with others.
7. Boomers will Invest in their Home.
Many realize that as they age, moving is not much fun.
When they search for their home (never to move from)
they are thinking about what many call "aging in place"
a term I prefer not to use, instead I refer to it as "thriving
In order to make this home work well for them, they will
gladly take some of the built up equity from the sale of
their previous house to add comfort and style as well as
making their home more age-friendly.
Trends are just what they sound like, a temporary direction.
Things never stay the same and things happen that can
change or direction.
For now, these are the trends I see occurring in the Baby Boomer generation.
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