The Baby Boomer generation is massive and on the move. Beginning in 2015, the housing market is projected to increase. Why? Baby Boomers are asking themselves, “should I stay or should I go?” Most Boomers are already retired or approaching retirement. Retirement = FREEDOM: no more worrying about their children or staying where the money is! A recent study, conducted by Merrill Lynch paired with Age Wave, revealed that “an estimated 4.2 million retirees moved into a new home last year alone.”
This new freedom available to the second largest generation has affected the housing market and will continue to do so. REALTORS® be prepared to take advantage of this movement.
What makes them move?
- Desire to be closer to family
- Ability to reduce home expenses
- Changes in health status
- Changes in marital status
- Empty nesting/children moving out
- Extra cash from selling previous home
Are they bigger or smaller homes?
- Three in ten retirees up-sized into a larger home last year.
- 19% moved into a same-sized home as their previous home.
- 51% downsized to a smaller home.
Where are they moving to, according to USA Today?
Now that you know the details on what shapes Baby Boomers’ decisions to move, what types of homes they are looking for, and top locations for retirement, take advantage–now and in the future. Millennials are not the only ones changing the housing market; look out for Boomers on the move!
*Image Source: Home in Retirement: More Freedom, New Choices by Merrill Lynch paired with Age Wave