Baby Boomer trends impact nearly every aspect of the economy, and the real estate market is definitely one of those aspects. For the first time in history, people age 65 and over will outnumber children under age 5, according to the National Institute on Aging. Somewhere between 8,000 and 10,000 American Baby Boomers turn 65 every day.
The real estate market keeps a keen eye on Baby Boomer housing trends to see how this aging will choose to live in the coming years. Due to economic setbacks and longer life expectancy, many Baby Boomers will retire later than age 65.
Also, this American cohort enjoyed real estate booms over and over again, making their home one of their most valuable assets, Forbes reported. Baby Boomers purchased sizable homes in the 80’s and 90’s, and square footages continued to increase until 2007. And there’s the rub. The smaller Millennial cohort entering first-time home buying days, doesn’t want big homes and is strapped by crippling student loan debt. Gen Xers, hit the hardest by the recent recession, carry far less home equity than their Baby Boomer parents, making it more difficult for them to make a jump into a new home.
It’s Not All Baby Boom Gloom and Doom.
Home renovations continue to storm the real estate market, with DIY and home improvement shows galore. Many homebuyers are up to gutting older homes and creating spaces that make sense for their families. However, Baby Boomers will attract more buyers to their McMansions if they take the steps toward radical renovations before listing an Indianapolis home.
Another trend for these larger houses is the ever-growing trend of multigenerational living. Young Millennials boomerang back into their parents homes, and Gen Xers welcome in aging parents. Renovations that accommodate the many adults in a home, like suites and studio apartments, can attract these melding family units.
Before Baby Boomers list their homes, a licensed REALTOR can guide the what renovations will attract the most buyers get the highest ROI. Contact Ted O’Donnell today for your free Market Analysis today.
By Ted O’Donnell, talktotucker.com/ted.odonnell