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Baby
Boomers Spawn New Real Estate Trends
Baby boomers have been “the real estate
generation,” said Bradley Inman, founder and publisher of Inman
News Features. As this generation moves into retirement, it will
bring huge changes to the business of selling homes.
The boomers – those born between 1946 and
1964—have been defined by their affluence and by their mobility.
While the average home in 1949 encompassed 900 square feet and
housed 4.2 people, the typical home today is 2,200 square feet and
hosts 2.6 people, said Inman. Call it the SUV effect; bigger is
better. “We have really overconsumed housing,” said Inman, himself
a baby boomer.
Boomers see housing as an important part of
their personal net worth. Unlike their parents, the thrifty
Depression survivors, boomers are comfortable with debt. They move
frequently and rarely pay off their mortgages. Instead, they love
the leverage that allows them to buy fancy houses with low down
payments, and to use the equity in those homes to finance boats,
cars and even start businesses. “Real estate is a financial game
we understand,” he noted.
Older boomers see real estate not just as a
place to live but as a way to express themselves. As they focus
less on careers, they are looking to move to new places.
Inman has studied where boomers aged 48 to 54
want to live and he sees the following trends:
- Suburban living. Some 38 percent of older
boomers want to stay in the suburbs, even though they often
complain about long commutes and sprawl.
- Resorts. Some 19 percent of boomers want
to move to resorts, which they associate with prestige, sports,
parties, belonging and a sense of “controlled adventure.”
- Country homes. Fully 36 percent of boomers
hope to move to the country, which they associate with peace,
serenity, simplicity and colorful locals. This trend also is
driven by which Inman calls “9/11flight.” After September 11,
boomers want to move away from population centers that could be
targets of terror attacks.
- Urban life. Only 5 percent of boomers want
to live in the city. This group is rejecting the suburbs for the
cultural vibrancy and intellectual appeal of the city. They like
walking for a café latte and newspaper and don’t mind dodging
panhandlers.
- Overseas. Only 2 percent of boomers hope
to move abroad, but for them a foreign country represents
danger, rebellion, unpredictability and adventure.
“We’re going to redefine real estate, just
like we did before,” Inman concluded.
--Richmond REALTOR (Fourth Quarter 2002)
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