Real Estate

The Mindset of Baby Boomers and Retirees

Baby boomers and retirees are shaping today’s housing market in unprecedented ways. Learn more about this market segment and how their choices will impact the future.

Baby boomers and retirees are shaping today’s housing market in unprecedented ways. Learn more about this market segment and how their choices will impact the future.

As they retire from full-time work, this generation has outgrown the family and work obligations that may have restricted their choice of home or community. That freedom, plus health challenges, marital changes and empty nesting are common reasons retirees move.

  • 64% say they are likely to move at least once during retirement.
  • 60% of pre-retirees anticipate staying in the same state or region.
  • 4.2 million retirees moved into a new home in 2014.

Boomers and Retirees: Who They Are
They are the largest generation of Americans born in U.S. history according to cnn.com. A 2014 Merrill Lynch study, “Home in Retirement: More Freedom, New Choices” conducted in partnership with Age Wave, states boomers and retirees:
  • Are between 50-68
  • Are beginning to face the health challenges of aging
  • Have the unprecedented freedom to choose where to live
  • 4 out of 5 boomers age 65+ are homeowners
  • More than 7 in 10 have paid off their mortgage

What They Value
  • A home large enough for family gatherings and out-of-town visitors. In fact, 30% of retirees bought a larger home.
  • One third have deep emotional connections to their home and choose to remain there.
  • They are interested in technology for their homes, especially where it can help reduce home expenses, e.g., smart thermostats. They also value technologies that connect them to their family and friends.

What They Want
  • Those choosing a retirement community want nearby amenities that center around their interests, i.e., continued learning, hobbies and recreation.
  • Many want to renovate their current home and create a dream home; after working hard to have the financial resources to do so.
  • They value forming strong community connections through volunteering, taking classes, visiting museums and libraries, and getting involved in other community activities.

SOURCES:
http://www.cnn.com/2013/11/06/us/baby-boomer-generation-fast-facts/index.html
http://www.nytimes.com/2015/01/20/science/millennials-set-to-outnumber-baby-boomers.html?_r=0
https://mlaem.fs.ml.com/content/dam/ML/Articles/pdf/AR6SX48F.pdf

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