For a large percentage of baby boomers, home isn’t just where the heart is – it’s where the pocketbook is, as well, according to a new NAR-commissioned
study, Baby Boomers and Real Estate: Today and Tomorrow.
The findings paint a picture of a generation that has embraced homeownership. Nearly 8 out of 10 boomers own their own
homes, and one in four own more than one property. For many, these investments are part of a retirement strategy – 4 in 10 survey respondents intend to make their vacation home their primary residence when they retire. Most baby boomers surveyed aren’t optimistic about retirement, however; two-thirds believe it costs too much today to truly retire and never work again. Affordability Sources in Cyberspace The shortest distance between renting and owning a home may be online. Many federal, state, local and private initiatives support affordable housing, but sometimes the difficulty in identifying these programs is a barrier in itself.
Is there an echo in here?
The oldest echo boomers (Gen Y), who are the children of baby boomers, are in their mid-twenties, and some have already become homeowners themselves. According to one study I found however, young people are prepared to delay buying their first home for five years or more to ensure they can afford something that meets their expectations. The study said, “The evidence suggests that Generation Y will delay buying housing for some time, but not forever.”
“If the economic landscape is favourable, there is likely to be a rush to buy into the property market as this demographic reaches a certain age and level of affluence,” according to the study.
It seems to boil down to the fact that these Gen Y homebuyers have learned from mistakes of older generations and are well studied in where the market place is today thanks to the internet and other sources. The ease of their position is that most of this generation does not have to sell property before buying. They are therefore in the driver’s seat.
