- Most Boomers believe they are 10-15 years younger than their parents and grandparents were at this stage of their lives.
- The majority of the 78 million boomers need to remodel their homes or will be moving due to being in transitional live stages.
Transition, in this case, meaning downsizing from the family home, but not yet ready for retirement.
- We’re looking at a lock-and-leave community with a home that is half the size and more energy efficient than our current property, and our mortgage and utilities will be reduced by more than half. This is a soon-to-be trend with Baby Boomers.
Millennials are clearly the future of real estate. Nevertheless, there’s a new trend afoot that might be your next hot opportunity and America’s wealthiest generation will be driving it.
Boomers not only control the purse strings; they’re holding almost the entire purse.
According to the International Council of Shopping Centers and the Economic Policy Institute, “The 55+ agent group controls more than three-fourths of America’s wealth and has three times the net worth of younger generations. More importantly, boomers outspend other generations by $400 billion each year on consumer goods and services according the U.S. Government Consumer Spending Survey.”
- The peak birth rate for the baby boomer generation occurred in 1960. These individuals turned 55 this year. For those who are still working, they are at the peak of their earning capacity.
- For many boomers, continuing to work is a choice. After all, retirement is for senior citizens. This stems from the fact that most boomers believe they are 10 to 15 years younger than their parents and grandparents were at this stage of their lives.
- Others have to work due to loss of retirement funds during the downturn — or because their identity is so strongly linked to what they do.
Boomers aren’t selling but that’s about to change
- Because the boomers control the inventory, their choice and inability to sell has been an ongoing drag on the current market.
- We’re at a tipping point where this is about to change.
- HPMKT predicts that “The majority of the 78 million boomers need to remodel their homes or will be moving due to being in transitional life stages. Transition, in this case, meaning downsizing from the family home, but not yet ready for retirement.”
The first boomer wave is happening
- The communities are “right-sized” luxury living.
- More money for travel, less time maintaining the property, and a wonderful community of friends the same age.
In the previous neighborhood, everything revolved around children. You know how many hotel nights you could buy for your guests with the money you will save on your property taxes and mortgage?