As a demographic, Baby Boomers purchased their first homes in the 1980s or ‘90s. Then, many graduated into a second, larger house.
Trends, however, indicate these bigger properties, sometimes dubbed “McMansions,” aren’t always practical. Financially, they become a burden to many. As many are located far out into the suburbs, they’re far from many conveniences.
Because of these reasons, trends concerning Baby Boomers have shifted. The market shows this older demographic is downsizing into something more practical.
Older, Higher-Income Americans are Choosing to Rent
While it’s expected that Millennials will continue to rent, the biggest demographic grabbing a share of the market are the 45 to 64 year olds. They’re predicted to increase the number of households renting in the future, as they move out of larger houses into apartments or rented single-family properties.
Paying Off the Mortgage
For those who decide to stay, paying off the mortgage before retirement turns into a goal. This way, after leaving the workforce, they’ll have smaller expenses, rather than worry about making the monthly payment.
However, this trend has engendered another: Buying a smaller house or a less expensive neighborhood. While there’s still a mortgage, the amount and property taxes end up smaller than they were.
Opting for Convenience
Should Boomers purchase a new property, convenience has to be key. This notion goes beyond just being affordable and close to amenities. Some requests include:
- Better energy efficiency.
- Updated appliances
- A walk-able neighborhood reducing the need for a car.
Or, within an existing home, renovating makes the home more age-friendly. A home may be modified for single-floor living or to reduce slip and fall hazards.
Many forget the Recession affected the Baby Boomers, albeit in a different manner than it did Millennials. One ubiquitous consequence, many reached retirement age without sufficient retirement savings. In response, the older population decides to sell the larger house and opt for something smaller and more affordable to fund retirement.
Are you looking to move into a smaller house? Look through By Carrier’s communities to see if something piques your interest. Should something seem like a good fit, contact us for more information.