Wednesday, October 18, 2006

Baby Boomers and The Impact on Housing

National Assoc. of Realtors new study shows how Baby Boomers will Impact Housing.
The below information is quoted from NAR's Study:

For the first time ever, married households are outnumbered by non-family, non-traditional households including a burgeoning number of single heads of households. Single women are 20% of homebuyers! So the question becomes: How will the Baby Boomers born between 1946 and 1964 impact housing as they head toward retirement?

Boomers make up 37.5% of U.S. households and make 31% more money than the median for all households--$64,700 in 2005. Boomers will impact popular culture for at least the next 12 years until the GenX'ers take over as the larest population group, but until then, the real estate industry is still struggling with second guessing what kind of impact these 78 million people will have on housing.

According to a new study of about 2000 Boomers performed by Harris Interactive for the National Association of Realtors,(NAR) the "me" generation will have a wide variety of needs, largely dependent upon their retirement plans--or lack thereof.

David Lereah, chief economist for the NAR, says baby boomers are living longer and are considering more options when it comes to retirement, which will significantly impact housing over the next 10 to 20 years.

The median age at which baby boomers expect to stop working is 70, but over one-fourth say they never intend to stop working! With most baby boomers currently in the workforce, and with many still raising children, boomers remain a significant driver of the housing market, as families with children compose nearly half of homebuyers.

Just over a quarter of the boomers are 55-60 yrs. old, which is when many people traditionally have begun to focus on retirement, but analysis of the survey suggest they are more likely to stay in the workforce longer and will be less likely to downsize than previous generations. This leading edge of the boomer generation is the key to future housing impact.

The Study shows that 32% of boomers favor the WEST as a place to live!!

Janis Calkins
California Oaks Real Estate

(805) 218-7016


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