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