Baby boomers leave their mark
If you were born between 1946 and 1964, you are a member of the largest generation in US history.
Baby Boomers have influenced how we live, what we watch on television – even the homes we buy. And, they have played an especially strong role in real estate markets.
They helped drive the recent real estate boom and they will continue to fuel the demand for homes for a long time to come.
Boomers range in age from 42 to 60 years old. The typical boomer is 50 years old. Forty-six percent of boomers are still in their 40s while one in six is between 42 and 44 years old. At the same time, the number of boomers turning 60 will grow rapidly since more than one-quarter of them are now at least 55 years old.
Home ownership rate for boomers is 78 percent – exceeding the overall national rate of 69 percent. Almost nine out of ten have owned a home at some point in their lives. 96 percent believe owning a home is a good financial investment. Among all boomers, 37 percent live in the suburbs, 24 percent live in urban areas and the remaining 40 percent live in rural areas or small towns.
Over 60 percent of baby boomer households are empty-nesters or two-person households. Twenty-five percent of the boomers live alone while only 13 percent have three or more adults in the household. As the children leave home, older baby boomers are more likely to live in a household with two adults.
Ten percent of all boomers said they are likely to buy additional real estate in the next 12 months.
Three out of five say their idea of the perfect location to retire is in a rural area or small town, only 12 percent saying an urban or city setting, and nearly half would consider living in an age-restricted environment. If money were no object, access to quality health care is important to more baby-boomers than being on a golf course (38 percent vs. 4 percent).
The median household income of baby boomers in 2005 was $64,700. This compares with a median household of $44,400 in 2004. Thirty-eight percent of boomer households report a household income of less than $50,000. Thirty-six percent of the suburban households report a household income of $50,000.
Marketing to this generation can be a challenge. Eight out of 10 boomers used a real estate agent last time they sold a home. The leading edge of this group is beginning to retire. Those coming close after them are making their plans now for where and when they will retire. As they have in the past, baby-boomers will help drive the demand for real estate in the years ahead.