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by G. Steven Bray
Conventional wisdom says aging Baby Boomers should be downsizing, freeing up existing housing stock for younger buyers. However, in a recent survey The Demand Institute found some counterintuitive results. Most Baby Boomers plan to stay where they are. Only 37% plan to move from their current home, and 46% of those who plan to move are looking for nicer homes and more square footage. Almost half plan to spend as much or more on housing than they did on their current home. How do you factor this into your marketing plan?
The study identified “Upsizers” and “Downsizers.” “Upsizers are finally looking to purchase their dream home,” the report says. “Many in this group will move from renting to owning…” The “Downsizers” are looking for a smaller home or one that is less expensive than their current home. However, that doesn’t mean they want lower quality. Expect Downsizers to want homes with high-end finishes and nearby amenities.
But, here’s an important result of the survey. The Upsizers are generally less affluent than overall respondents. The expected median price of their next home is $180k, whereas the expected median price for Downsizers in $200k.
Another important result is that whether they’re upsizing or downsizing, Baby Boomers who plan to move will continue to live in single family homes, and most intend to buy. And surprisingly most want a home with a garden or yard.
Those who plan to stay put feel their homes are equipped for them to “age-in-place.” This is despite the fact that most admit their homes lack age-friendly features, which calls into question whether their plans to keep their homes will be realized.
Click here for a link to the survey results.