The Booming Baby Boomer Real Estate Market
A prudent and money conscious real estate agent should thoroughly consider the baby boomer market as a demographic that is not only growing by millions every day but also has the resources to make a profitable real estate transaction for you and has the will to make a home move for a variety of reasons.
To understand the baby boomer market you should first divide the group by age. Consider people over 55 as one target market and those between 47 years of age and 55 years of age as a separate market. Both groups have defined needs that are distinctly different and will guide you in your sales approach as an agent.
Eighty-seven percent of all baby boomers have delayed selling their home due to market conditions caused by the “Great Recession”. The same percentages of all baby boomers own or are presently looking to own a vacation home or a rental property. The continued improvement in the real estate market over the last two years makes baby boomers prime targets for a savvy agent.
All baby boomers prefer to relocate to areas that are close to their health care providers, close to their family, and have easy access to shopping and restaurants. Being close to public recreational areas and public transportation is important to about one third of all baby boomers – city living makes this a priority to some.
Half of all baby boomers want to down size to a flat floor plan for convenience and to simplify their lives now that the nest is empty. About one third of all baby boomers want to move to save money and a growing price trend for homes makes these people a ready market for a knowledgeable real estate agent.
Baby boomers from 47 to 55 (young boomers) prefer single family homes. Half of this group want to down size their home and about a third are looking for a second home as a vacation home or a rental property. One third of young baby boomers are already in the process of selling their home and looking for a new residence.
Older boomers (over 55 years of age) in majority (80 percent) want to down size their living arrangements. The market is split dead even between those who prefer a single family residence and those that prefer a townhouse or condo. About one fifth of older baby boomers are looking for a second property as an investment or vacation home. About one third of older baby boomers want to live in a community that has people in their age group and that offers an active life style suited to their age and interests.
Baby boomers will make up more than one half of the people in the United States in the next twenty to thirty years. A smart real estate agent will look at this market as a source of potentially untapped income because the majority of retired and retiring people were fortunate enough to live during the time when pensions and retirement packages from employers were still lucrative. Baby boomers will also benefit from Social Security income.
The data related above is the result of a survey of 1,333 agents from Coldwell Banker Real Estate. These agents say that 96 percent of them are already working with baby boomers on a new real estate deal.