Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Homeownership

Older boomers are taking over the housing market

(HOMEOWNERSHIP) New data from the NAR shows that older boomers are taking over the housing market in more ways than one.

woman sitting on a bench alone representing that we need face-to-face interaction, not isolation and doubt.

Times, they are a changin’

The National Association of Realtors have released data confirming what we all could probably guess, people with equity and secure income are more likely to buy homes.

bar
However, the numbers are in, and it is a bigger difference than we thought.

Boomers making their comeback

The first bit of big news is that Baby Boomers, older Boomers in particular make up a larger proportion of home buyers than in the past. Folks aged 62 to 70 made up 14 percent of total home buyers in 2016, not to mention 21 percent of single female buyers.

That range is also more likely to prioritize personal use rather than investment in their real estate purchases:

19 percent cite retirement as their reason for purchase, with a further 19 percent motivated by the desire to live closer to family and friends.

Older buyers are also the most willing of any demographic to move long distances, at a median move distance of 25 miles, and are more likely to buy long-term, with 31 percent of buyers stating that they don’t plan on moving again and expect to live in their new home permanently.

Plot twist

That’s where things get interesting. Despite being the most active home buyers in the marketplace, the household income of buyers in the 62 to 70 range is meaningfully lower on average than the median income of buyers overall, $76,800 to the median $88,500.

Older Boomers offset short income with comparatively higher equity.

Over half (56 percent to be exact) of buyers use proceeds from the sale of a previous residence to fund their down payment, and 6 percent take funds from an IRA. They’re also the most likely demographic to have saved for a home for more than 2 years.

Role reversal

Bigger news, while older buyers are typically more conservative buyers, tougher and more demanding than the darn kids who won’t get off their lawns, older Boomers seem to be reversing that trend.

Boomers aged 62 to 70 aren’t just the most active home buyers in the marketplace, they’re the most likely to be happy with the purchase process.

Boomers reported a remarkable 91 percent satisfaction rate. They’re also the least likely to describe the paperwork as a difficult step, and most likely to state they made no compromises on their home purchase.

Bigger yet – older folks are looking to sell.

They’re the second most active home sellers in the marketplace, making up 21 percent of sellers overall. Boomers sell for the same sorts of reasons they buy: 21 percent because of retirement, and 26 percent to be closer to family and friends. As indicated by their buying patterns they also have the highest equity of any demographic at 36 percent, an average cash value of $60,000.

New target

People are living longer, working longer and making money longer.

Sales and marketing tends to emphasize younger demographics, but it’s increasingly clear that those looking to buy and looking to sell should both be looking for the oldest folks in the room.

#BoomerTarget

Written By

Matt Salter is a writer and former fundraising and communications officer for nonprofit organizations, including Volunteers of America and PICO National Network. He’s excited to put his knowledge of fundraising, marketing, and all things digital to work for your reading enjoyment. When not writing about himself in the third person, Matt enjoys horror movies and tabletop gaming, and can usually be found somewhere in the DFW Metroplex with WiFi and a good all-day breakfast.

Advertisement

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Real Estate Big Data

From all angles and industry, economic downtown is being reported, including now from Bank of America CEO, Brian Moynihan.

Real Estate Big Data

The housing market is on fire. Will we continue to see home values increasing over the next 2 years? This prediction poll has the...

Homeownership

(HOMEOWNERSHIP) Are you interested in a side hustle and willing to offer up your humble abode to be part of the magic of filmmaking?...

Real Estate Big Data

(BIG DATA) Warning bells on the housing market have been ringing for over a year. While this prediction isn't a surprise, it's disappointing news.

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022