If only all potential homebuyers operated like the baby boomer generation – then business really would be booming!
According to a national survey conducted by Coldwell Banker of more than 1300 of the firm’s agents, 87 percent of the agents reported having at least one baby boomer client who owns or was looking to own a second property. In addition, 22 percent of the agents reported that more than 50 percent of their baby boomer clients own or want to own a second property.
“Our survey clearly indicates that those boomers who are financially secure are actively seeking to buy their retirement home, or a second home, and they are taking advantage of the opportunities and value available in today’s market,” said Coldwell Banker CEO Jim Gillespie.
Beyond the general data, the full survey divides the 79 million baby boomer demographic into two groups: older boomers, aged 56 to 64, and younger boomers, aged 47 to 55. Of the two groups, the younger boomers are by far the most prone to invest. 34 percent of the younger crowd were interested in a second home, compared with 22 percent of older boomers. Likewise, 31 percent of younger boomers were looking to sell their current home for a larger home, but just 6 percent of older boomers shared that desire.
All of this is great – but what impact will it have on the greater housing market? Is greater investment by a small amount of baby boomers enough to lift housing out of its current rut?
One detail to consider is homeownership trends in younger Americans aged 25 to 34 and 35 to 44 year. Of those two groups, respective homeownership rates dropped 9.6 percent and 9 percent.
Fannie Mae, the company that reported the statistics, stated that delayed marriages, more time in school, and a general shift in homeownership attitudes could be permanent, even when the greater economy recovers. So, would greater baby boomer investment be enough to ward off lagging homeownership in America’s future generations? Only time will tell.