What affect do BABY BOOMERS have on the housing market?

What affect do BABY BOOMERS have on the housing market?


A hot topic, especially in Seattle, where the lack of inventory is daunting and is essentially locked up. So, what affect do BABY BOOMERS have on the housing market? Can they free up inventory? Where do they go? 


SUMMARY


SUMMARY

Q. WHAT AFFEct do baby boomers have on the housing market?

  • Homes led by people 55+ control 2/3 of all home equity
  • They are locking up over $8 TRILLION DOLLARS in housing
  • They're healthier, wealthier, and staying in their homes longer
  • We should see a shift in the next 10 years of these "healthy" baby boomers started to enter the housing market/downsize more. 

Q. What are they doing? Do they want to downsize?

  • Yes. They want to be in ammenity rich areas. They want a simpler lifestyle.
  • They're over being retired with 4,000 square feet, a lawn to mow, etc.
  • They want freedom, a concierge. They want to go travel for two weeks and not have to worry about their house. 

Q. Where are baby boomers going?

  • Baby boomers are looking to take their equity and downsize into a condo, townhome, something in an amenity rich area.
  • They want to be able to walk downtown, walk EVERYWHERE. 
  • The problem is the lack of SUPPLY for these types of properties are slim and competitive.
  • Baby boomers are also taking their equity, buying a home somewhere cheaper to retire, and taking the additional equity and investing it into income producing assets. 

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Austin Schneider, Realogics Sotheby's International Realty