Baby Boomers-Real Estate-Trends, Part 2

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 

     retirement.

     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

    appliances.

 

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

     their walk.

     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 place".

    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. 

 

For more information about Lifestyle Transitions and how John Wiley can assist you:

Senior's Real Estate Specialist