S a group, baby boomers constitute the greatest population cohort in the United States’ history. The size of the group gives vast sway over American politics, popular ethnic, and obviously, real estate to it. To assess the effect of the baby boomers in the future of real estate, the National Association of Realtors (NAR) ran a study in 2006. The findings of the research were released in the report entitled Real Estate and Baby Boomers: Today and Tomorrow. Here are some highlights from the NAR study.
As stated by the NAR report, baby boomers now range in age from 42 to 60 years old. The normal baby boomer is 50 years old, as well as 60 turned in 2006. About 46% of baby boomers are in their 40s, and about 55 years old.
As a group, baby boomers are in their peak earning years. In 2005, baby boomers and them had a household income of $64,700 and a household income of at least $100,000 per year, respectively.
About 78% of baby boomers possess a house, which is higher in relation to the national ownership rate of 69%. About 96% of baby boomers think that home ownership is an excellent financial investment.
FUTURE property PURCHASES
About 10% or 7.8 million of all baby boomers said the baby was likely to buy additional real estate in the next 12 months. Of these prospective buyers, two thirds were planning on purchasing a primary residence, 26% would like to purchase acreage, rental property is wanted by 19%, 15% need seasonal dwelling or a vacation home, and a commercial property is wanted by 14%. WHAT CHARACTERISTICS BRING BOOMERS
When baby boomers were asked about what attributes are most significant to them, 38% wanted a lower cost of living, 38% needed to be near family, 38% needed simple accessibility to quality healthcare, 37% needed a better climate, and 36% needed to be near a body of water.
PREFERABLE COMMUNITY COMFORTS
When baby boomers were inquired about the kind of community conveniences that interest them most, about 18% needed to be near ethnic offerings, 9% needed to be closer to their family, 4% needed to be on a golf course, and 3% needed simple accessibility to educational facilities.
WHERE DO BOOMERS need TO RETIRE
33% of baby boomers need to retire in a rural area, 30% in a little town, 25% in a suburban area, and in an urban community when they were asked about where they would like to retire.