Baby Boomers Own More
and Buying More Real Estate
Baby Boomers own more homes than the national average with one out of four owning more than one property - according to a new study by the National Association of Realtors®.
Baby Boomers own more homes than the national average with one out of four owning more than one property - according to a new study by the National Association of Realtors®.
The comprehensive study was conducted of nearly 2,000 Americans born between 1946 and 1964 - Baby Boomers.
Baby Boomers are in our peak earning years and continue to wield great influence in the U.S. economy. On one hand Baby Boomers have an almost insatiable desire for real estate and on the other, many of us have not adequately planned for our retirement. What should not be overlooked is our discretionary spending interests as well as our appreciation of housing as a great investment.
Nearly eight in ten Baby Boomers own our own homes and almost nine out of ten of us have owned a home at some time in our lives. 96% of us believe that owning a home is a good financial investment. According to the U.S. Census Bureau, the overall rate of Baby Boomer home ownership is over 69 percent.
One-quarter of the Baby Boomer research respondents that own a primary residence also own one or more other kinds of Real Estate. 13% own land, 8% own rental property, 7% own a vacation home or seasonally occupied property, 2% own commercial real estate and 3% some other kind of real estate. Baby Boomers own 57% of all vacation/seasonal homes and 58 percent of all rental properties in the United States.
Baby Boomers own the largest percentage of two or more homes. Of the Baby Boomers who own rental investment property, 34% own multiple properties: 14% own two rentals, 5% own three to four properties and 14% own five or more rental properties. Of the Baby Boomers who own vacation homes or seasonally occupied property, 13% said they own two or more vacation or seasonal homes. Interestingly the research found that four out of ten respondents who own a vacation home intend to eventually make that property a primary residence.
The survey shows that one-quarter of all Baby Boomers are not satisfied with their present homes. That means a good portion of us may be considering a move. If that is so it's important for the industry to understand our preferences and needs in our retirement home.
Ten percent of all Baby Boomers said they are likely to buy additional real estate in the next 12 months with two-thirds considering the purchase of a primary residence; 26% were interested in land, 19% in rental property, 15% in a vacation or seasonal home and 14% in purchasing commercial property.
Of those Baby Boomers surveyed, an overwhelming number of us say that the perfect retirement location is:
• a smaller town or community that offers:
• a secure community environment
• easy accessability to quality health care
• a good quality of living with a comparable lifestyle
• easy accessability of shopping and travel facilities
• stable retirement real estate investment values
• a moderate living climate without extreme weather
• natural beauty of environment
Bottom Line: Baby Boomers are investing in real estate for retirement.
Where will Baby Boomers buy Real Estate to get more bang for our buck?