These responses point to a massive downsizing trend!
It’s all about millennials these days. Everything seems to center around these special snowflakes. But what about the original “me” generation? We’re talking about baby boomers, of course. What do these roughly 76 million Americans want when it comes to housing?
Well, they want multicar garages, for one thing. According to a recent survey by national homebuilder PulteGroup, they were the top feature boomers were looking for in a new home, followed by open decks or patios; eat-in kitchens; and a private yard.
About 38% of boomers plan to buy a home within the next three years, according to the report. About 11% expect to purchase a residence within the year.
The survey was of 1,043 folks between the ages of 50 and 65 who plan to buy a home in the next decade.
“Retirement marks a new phase in a baby boomer’s life, and it only seems natural to relocate or move to a new home when transitioning away from their primary career, or from the day-to-day rearing of school-aged children,” Jay Mason, vice president of market intelligence for PulteGroup, said in a statement. “It’s not surprising that the 55+ buyer wants a variety of options and choices in their homes.”
According to the survey, 39% of respondents said the main reason they’re moving is because they want to retire, 33% want to downsize, and 30% want to move to a more desirable location.
“One thing we know about boomers is they are not done yet,” says Amy Lynch, president of Generational Edge, a Nashville, TN–based company that consults with companies on generational differences in employees. “As a group, they are starting encore careers and also going back to school. And they often move to be near their millennial kids, who are having kids.” They also start new families of their own, through divorce or remarriage.
All of these situations may require a move. About 26% of boomers plan to stay in their current cities, but just move to a different home, while 34% want to remain in the state, but in a different city or town. Also, 38% hope to cross state lines.
Their top retirement destination? You guessed it: Florida. It seems you just can’t beat all of that year-round sunshine. The state was followed by fellow warm-weather states Arizona, North Carolina, and South Carolina. The cost of living is lower in these states than on the pricier West Coast or in the Northeast.
About 82% of boomers wanted to be someplace affordable, and 74% want to be close to their preferred health care programs.
But boomers don’t want to just pack up and leave their grandchildren. Being close to kids was their top consideration when choosing a new community. They also want to be near the water and park or other green space.
“We are in a period in this country where family life and family connections are very strong,” says Lynch. “There’s a lot of regret among boomers because they worked so many long hours when their kids were young. With grandkids, there’s a chance to make up for that.”
1. Well, they want multicar garages, for one thing. According to a recent survey by national homebuilder PulteGroup, they were the top feature boomers were looking for in a new home, followed by open decks or patios; eat-in kitchens; and a private yard.
Just wants to tinker around the house.
2. “Retirement marks a new phase in a baby boomer’s life, and it only seems natural to relocate or move to a new home when transitioning away from their primary career, or from the day-to-day rearing of school-aged children”
New Home = Better suited for seniors.
3. 39% of respondents said the main reason they’re moving is because they want to retire, 33% want to downsize
It is very rare that people retire and buy up in price, plus pay substantially more in property tax too. So let’s agree that retire = downsize, and combine the two and call it 72% want to downsize.
4. 34% want to remain in the state, but in a different city or town. Also, 38% hope to cross state lines.
Leave town = downsize. Might be the same 72% who want more for less, and bank some of their equity. Easier to find a better-quality house too.
5. About 82% of boomers wanted to be someplace affordable, and 74% want to be close to their preferred health care programs.
Affordable = downsize.
Well, Jim, we sure did it all backwards, didn’t we?
Except for you encouraging (insisting) we get single story (or at least first floor floor master).
1. Yes. (but didn’t) Now we want a small house but with a barn out back. LOL
2. Got the single story (thanks)
3. We just wanted to retire regardless.
4. Moved way across the country. Tripled our house payment!
5. Well, Detroit to San Diego is not the “affordable” move. LOL But at least there are health care centers!
6. Got a good realtor. My add-on. 😉
Jim, I should have added to #1: didn’t get the 3-car garage. Got the rest.
once you downsize in retirement, you generally cannot afford to go back, I had a friend who retired and wanted to save money i.e. did not want to pay calif income tax, so he moved to Fernly, Nev….from san diego, thats right, about 5 years ago, sold his house and now is regretting it ever since, sure he pays no state income tax, but he is in the middle of nowhere, just about 6 months ago, he made a effort to come back here…he was priced out…of even a condo in the same area ,after 5 1/2 years…and his place has gone up a fraction.
For all you complainers out there, once you are gone, then you can really appreciate what you have given up..weather and activities wise.
Look for a spike in demand for single story homes in San Diego, especially people who want to retire and downsize since the kids are long gone. Especially in the costal areas, that is going to be a premium.
I live in a single story from a two story…no comparison…super access and would never go back. New is a premium as no repair and generally a 10 year warranty which will avoid costly repairs…..
If I was think on the fence, I would downsize, and get single story, new, and good neighborhood like, San Marcos, they are building new homes by Calwest at around 800K and they are really built well
Very rare indeed – I’ve only had one come back.
This survey is of people that plan to buy a home in the next ten years, not of baby boomers generally. It says nothing about baby boomers in general. It’s also a survey by a home builder, so not exactly an unbiased source.
“The survey was of 1,043 folks between the ages of 50 and 65 who plan to buy a home in the next decade.”
The rules are different in coastal California. People move when they have to move because they can no longer function in their houses. Most folks where I live are choosing to age in place as long as they can. The Prop 13 property tax base and capital gains taxes even with a $500,000 exclusion for couples discourage moving. So do the prices of the homes in places these folks want to live.
The “liquidation” will be at death or when these people go to assisted living or nursing care. Some houses will be absorbed by the next generation, who would otherwise be excluded from the coastal market. My guess is the massive change in ownership will occur 10 to 15 years later than it did for previous generations.
I’m just trying to make a point that of those who are moving, the vast majority are downsizing.
JtR said: “Very rare indeed – I’ve only had one come back.”
JtR said: “Very rare indeed – I’ve only had one come back.”
Yes – you! The only couple I know who left California to retire and came back!
Yep – I thought I resembled that remark. I’m a little surprised we’re unique.
BTW – the two ? ? were supposed to be a “thumbs up” and a “grinning face” but either I’m losing my computer chops or maybe your blog doesn’t speak “emoji”.
Boomers are the Millenials of yesterday. They want EVERYTHING. And they want it when they want it. I’m sorry but I find them to be a petulant generation. Who doesn’t want a single story with good medical care,
good weather, and a private backyard??? Duh! Boomers don’t own those desires. They just bark the loudest about it with their sheer mass. Sorry, I’m over it!!! Signed,
Self-made Gen X!