While much of the attention in the rental market focuses on millennials, there’s another significant demographic—nearly 80 million baby boomers—that deserves attention. Research projections indicate that between 8,000 and 10,000 baby boomers turn 65 every day.
Many retiring boomers may still desire the security of homeownership, but others may seek a new living situation for various reasons. Downsizing to a smaller home with less landscaping and maintenance doesn’t necessarily mean finding a less expensive option. Some boomers seeking a lifestyle change may opt for a smaller but more expensive unit due to its desirable location, proximity to their interests, and personal preferences, creating the perfect home.
Those affected by the economic downturn in 2008 may need to sell their homes out of necessity, allowing them to access liquid investments that would otherwise remain tied up in real estate during their retirement years. Additionally, some boomers prefer not to be anchored to a single location; they enjoy renting homes in different areas throughout their retirement. This generation may be the first to prioritize mobility and freedom over traditional homeownership.
Research indicates two of the most significant factors for renters today are lifestyle and financial considerations. So what do baby boomers want in their next home? It really depends on the person, but smaller homes in a location suited for their interests, with a private retreat-like style and luxurious yet functional amenities are appealing to boomers.
The tradition of buying a house and living in it for 50 years has changed, just like interests and desires of the people who live there. Baby boomers account for one quarter of the US population. Paying attention to their housing wants and needs may be the secret to superior property investment returns in the future.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
