Booming and Moving

Getting to know the Baby Boomers of 2015 and their impact on the housing market.

Real estate sales is not a one-size-fits-all business. Different generations require different tactics. It is imperative that agents understand their clients both individually and generationally. The age group expected to have a big impact on the housing market this year is baby boomers.  Baby boomers are those born between 1946 and 1964.

More Americans were born in 1950 (41 million) than in any other year and they are turning 65 this year. It is estimated that 10,000 boomers a day will turn 65 from now through 2030.  What are they going to do with their existing homes? Will they stay or will they sell?

A recent survey conducted by the California Association of REALTORS® found that less than half of baby boomers who are currently renting do not have debt that would prevent them from buying a home.  The survey further found that 22 percent of those renting plan to buy a home in the next five years and 63 percent of them would like to buy a home if they could afford it. This survey polled baby boomers only in California where there is are 8.6 million baby boomers (representing 11% of all baby boomers). (U.S. Census Bureau)

So what should real estate agents know about this demographic that is expected to take the housing market by storm in 2015?

Boomers make up 40 percent of U.S. household heads
40 percent of U.S. households are headed by someone who is between the ages of 50-69. (1)

Boomers are not retiring only in sunny states (2)
83 percent chose to remain in the same state whether it was cold or sunny.  The four most baby-boomer-populated states are California, New York, Florida and Texas.

Boomers prefer diverse neighbors (2)
Only 7 percent of retirees today live in age-restricted communities.

Boomers have been, and will continue to be, an entrepreneurial generation (3)
They will launch twice the number of new businesses as Millennials in the next year. This could mean they will move to states with favorable business taxes and benefits.

Boomers make up a large percentage of existing homeowners (4)
Homeownership among those over 55 is about 80 percent.
72 percent of those over 65 have no mortgage.
People over 65 have an average home equity of $212,800.
64 percent are likely to move at least once during retirement.

They want to receive in-home health care (4)
Nursing home residents have declined 5% to about 1.4 million from about 1.5 million during the 10 years that ended in 2012.
The number receiving in-home care is up nearly 30 percent to 3.4 million during the same period.

They are attracted to homes and neighborhoods with features that appeal to older buyers (5)
This includes maintenance-free amenities, open floor plans, walking trails and social and fitness activities.

They are active-adults that prefer new(er) construction (5)
Homebuilders like PulteGroup with its Del Webb Communities are appealing to affluent active-adult buyers with their open floor plans, convenience to service amenities and recreation opportunities.

Are you interested in learning more?

Explore the systems for increasing your listing inventory at minimal cost through probate listings and senior downsizing opportunities in the Group Coaching program Baby Boomer Listings. In the KW MAPS Group Coaching course Baby Boomer Listings taught by Aaron Simmons [Total GCI: $21,487,300.79 // Closed Units 1,528 (Member of the Chris Heller Team)],  you will learn to build systems within the three pillars of the baby boomer / senior business; Probates, Implementing the senior transition program, Establishing a professional referral network.