| Baby boomers, baby boomers, baby boomers; we all | | | | two-thirds were planning on buying a primary |
| hear this term over and over again. So who are the | | | | residence, 26% want to buy land, 19% want rental |
| baby boomers? Baby boomers are people in the | | | | property, 15% want a vacation home or seasonal |
| United States who were born between 1946 and | | | | home, and 14% want a commercial property. |
| 1964. Approximately 78.2 million people fall into this | | | | WHAT FEATURES ATTRACT BOOMERS |
| category. | | | | When baby boomers were asked about what |
| As a group, baby boomers comprise the largest | | | | features are most important to them, 38% wanted |
| population cohort in the history of the United States. | | | | a lower cost of living, 38% wanted to be near family, |
| The size of the group gives it vast influence over | | | | 38% wanted easy access to quality health care, |
| American politics, popular cultural, and of course, real | | | | 37% wanted a better climate, and 36% wanted to |
| estate. To evaluate the influence of the baby | | | | be near a body of water. |
| boomers on the future of real estate, the National | | | | PREFERRED COMMUNITY AMENITIES |
| Association of Realtors (NAR) conducted a study in | | | | When baby boomers were asked about the type of |
| 2006. The findings of the research were published in | | | | community amenities that interest them most, about |
| report entitled Baby Boomers and Real Estate: Today | | | | 18% wanted to be near cultural offerings, 9% |
| and Tomorrow. Below are some highlights from the | | | | wanted to be closer to their family, 4% wanted to |
| NAR study. | | | | be on a golf course, and 3% wanted easy access to |
| AGE DISTRBUTION | | | | educational facilities. |
| According to the NAR report, baby boomers now | | | | WHERE DO BOOMERS WANT TO RETIRE |
| range in age from 42 to 60 years old. The typical | | | | When baby boomers were asked about where they |
| baby boomer is 50 years old, and the oldest of the | | | | want to retire, 33% of them want to retire in a rural |
| baby boomers turned 60 in 2006. About 46% of | | | | area, 30% in a small town, 25% in a suburban area, |
| baby boomers are in their 40s, and about 25% are | | | | and only 12% in an urban community. |
| at least 55 years old. | | | | BOOMERS AND THEIR REAL ESTATE AGENTS |
| HOUSEHOLD INCOME | | | | Baby boomers consistently use the services of a real |
| As a group, baby boomers are in their peak earning | | | | estate agent. Approximately 60% of homebuyers |
| years. In 2005, baby boomers had a household | | | | and 79% of home sellers used a real estate agent in |
| income of $64,700, and about 25% them had a | | | | their last transaction. |
| household income of at least $100,000 per year. | | | | SUMMARY |
| HOME OWNERSHIP | | | | The baby boomers have had and will continue to |
| About 78% of baby boomers own a home, which is | | | | have a significant impact on the real estate market. |
| higher than the national ownership rate of 69%. | | | | As the boomers near retirement, they continue to |
| About 96% of baby boomers believe that home | | | | value real estate and will continue to invest in |
| ownership is a good financial investment. | | | | properties and land. Real estate agents would be well |
| FUTURE REAL ESTATE PURCHASES | | | | served to understand what baby boomers want in |
| About 10%, or 7.8 million of all baby boomers, said | | | | terms of their real estate investments, and design |
| they were likely to purchase additional real estate in | | | | strategies that target the needs of this enormous |
| the next 12 months. Of these potential buyers, | | | | population cohort. |