Baby Boomers are a cohort 67 million strong, which means their real estate preferences influence our housing markets in marked ways. Recently released survey data shows that the cohort possesses all but approximately one-third of our nation’s home equity, which means their home buying decisions factor immensely in our real estate markets.
Results from a recent survey show that although a number of Baby Boomers are happy in their current homes, approximately 27 million plan to be in the housing market in the near future. The same survery provided insights into what features they would like their future homes and communities to offer.
Baby Boomers hold the lion’s share of our nation’s home equity
Earlier this month, Freddie Mac released data from a survey they conducted, which indicates that homeowners age 55+ are well positioned to “have a significant impact on the housing market.” Per the survey, the Baby Boomer cohort possesses $8 trillion of America’s home equity, which equates to almost a two-thirds share.
The survey results also indicated that 40 percent of Baby Boomers would like to move, which means that 27 million homeowners may be in the real estate market in the future. Of them, 13 percent stated that they plan to move in the next four years.
Are Baby Boomers planning to upgrade or downsize when they buy new homes?
The Freddie Mac survey also showed some interesting trends in the price range home buyers age 55+ are targeting. When asked about their next home purchase, survey respondents fit neatly into two categories: those looking to purchase in the same price range or higher, and those looking to purchase less expensive homes.
When asked about their planned home purchases:
- 12% of home buyers age 55+ expect their next home to be more expensive
- 37% of home buyers age 55+ plan to purchase a home in the same price range
- 50% of home buyers age 55+ plan to purchase a home that is less expensive
What home and community features matter to home buyers age 55+?
The survey also captured information about what home and community features matter most to home buyers in the Baby Boomer cohort. Homes in affordable communities with amenities that would come in handy during retirement years topped the list. The third most important factor that buyers age 55+ want is properties they are not responsible for maintaining.
Top 10 factors that matter to home buyers age 55+ are:
1. Affordability (46%)
2. Amenities (44%)
3. Less maintenance (41%)
4. Being near family members (31%)
5. Less property care responsibility (30%)
6. Walkability (28%)
7. Services for adults (25%)
8. Warm climate (19%)
9. Smaller home for downsizing (19%)
10. Public transportation (17%)