Business Growth

Baby boomers, baby boomers, baby boomers, we all hear this term over and over again. So who the “baby boomers” are? Baby boomers are the people in the United States who were born between 1946 and 1964. About 78th 2 million people fall into this category. When a group of baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it enormous influence in American politics, popular culture, and of course real estate. To evaluate the influence of baby boomers on the future of real estate, led the National Association of Realtors (NAR), a study in 2006. The results of the research were in the report entitled Baby Boomers and Real Estate: Today and Tomorrow published. Below are some highlights from the NAR study. AGE Distributions According to the NAR report baby boomers now range in age old 42-60 years old. The typical baby boomer is 50 years old and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old. Household income As a group, baby boomers are in their peak earning years. In 2005, baby boomers a household income of $ 64,700 and 25% had a household income of at least $ 100,000 per year. Home Ownership About 78% of baby boomers a house that is higher than the national ownership rate is 69%. About 96% of Baby Boomers believe that home ownership is a good investment. FUTURE estate purchases About 10% or 7 All eight million Baby Boomers said they are more likely to purchase homes in the next 12 months. Of these potential buyers, two thirds were for the purchase of a principal residence plan, 26% want to buy land, 19% want the item, 15% want a cottage or seasonal home and 14% want a commercial property. What features ATTRACT BOOMERS For example, when baby boomers were asked what qualities are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a water body. PREFERRED community amenities As baby boomers on the type of community amenities that interest them most, about 18% were asked wanted in the vicinity of cultural resources, 9% to wanted to be closer to her family, was up 4% on a golf course, and 3 % wanted easy access to educational institutions. WHERE DO BOOMERS WANT to retire As baby boomers were asked where they want to retire, 33% of them want in a rural area, 30% in a small town retirement, 25% in a suburb, and only 12% in an urban community. Boomers and their real estate agents Baby boomers consistently use the services of an estate agent. About 60% of homebuyers and sellers 79% of Home using a real estate agent in their last transaction. SUMMARY The baby boomers had and still have a significant impact on the real estate market have. Since the age groups nearing retirement, they continue to value a property and will continue to invest in real estate and land. Estate would be well served to understand what baby boomers want in terms of their investment in real estate and design strategies that meet the needs of the target population of this huge cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow