Baby boomer real estate trends
October 27, 2011
In a recent survey of more than 1,300 real estate agents, Coldwell Banker Real Estate found a mix of restrained and forward-looking attitudes among baby boomers. Despite current economic difficulties, 87 percent of real estate agents and brokers surveyed said they had clients interested in owning an investment home, or who already posses one. An equal percentage, however, said boomers were delaying home sales due to economic conditions.
"Our survey clearly indicates that those boomers who are financially secure are actively seeking to buy their retirement home, or a second home, and they are taking advantage of the opportunities and value available in today’s market," said Jim Gillespie, CEO of Coldwell Banker Real Estate.
Aside from these discoveries, the survey also revealed Baby Boomers attitudes toward real estate seems to vary depending on their age.
Home size
Older boomers, aged 56-64, were more likely to be interested in moving to a smaller home. Of the respondents, 80 percent said their older baby boomer clients were interested in that type of property, compared to 50 percent of those aged 47-55.
Nearly half of the agents reported the interest was due to a desire for a simpler lifestyle. Only 6 percent noted older baby boomers looking for a larger home, whereas almost a third who stated younger boomers were interested looking to upgrade. Older baby boomers may be reaching the age where the normal maintenance and upkeep of a house becomes more of an effort, and wish to reduce their responsibilities as a homeowner.
On the other hand, 28 percent did indicate that saving money was a reason. Some older homeowners nearing or arriving at retirement age may be looking for ways to decrease expenses to ensure their savings and retirement income last the rest of their lives.
Type of property
In accordance with their opinions on size, 35 percent more agents reported young baby boomers were planning to buy a single-family home than their older counterparts. While 47 percent of agents stated their older boomer clients wanted a single-family home, an equal percentage indicated that demographic preferred a townhome or condominium. More than a quarter said older boomers had a preference for an active adult community.
The nation's 79 million baby boomers remain a major factor in the housing market and the economy in general. As time continues to pass, those currently in the 47-55 age bracket may find their attitudes shifting to become more in line with their older counterparts. If that occurs and present attitudes remain, then boomers would steadily move into smaller homes over time.