Can Baby Boomers save the Housing Market?

A client of mine has seen this trend coming and is focusing his new construction efforts on this demographic. This is from MarketingCharts.com. (Click on the charts to make them BIGGER).

One In Four Boomers Plans Move to New Home

One in four Baby Boom generation households (26%) expects a future move from their current home, with most reporting they will seek a single-level home that is more comfortable or convenient, according to a new survey conducted for AARP by Opinion Research Corporation

Echoing past surveys, the research found that most Boomers (79%) say they would like to stay in their current home for as long as possible, AARP said. Less than 10% would like to stay in their current home but don’t think they will be able to do so.

Many of those who expect to move said they will be looking for a better house, a better climate or a home that is closer to family and friends. More than half of those Boomers (age 45-64) planning to move expect to look for a home that is all on one level (59%). About half said they will look for a newer home (50%) or a smaller home (49%).

One third of Boomers do not foresee any challenges with their current home that would cause them to consider moving. However, one-fourth say that stairs may be a concern. Others cite landscaping and yard challenges, bathroom issues, narrow doors and hallways and lighting problems.

Older boomers are significantly more likely than younger boomers to think that they will move into a single level home (68% vs. 54% of those planning to move), but age is not the only factor that affects expectations, the survey found. Boomer men are more likely than women to believe they will move into a newer home (61% vs. 42%) or move into a home in a warmer or better climate (41% vs. 25%).
Boomer women are more likely than men to think they will move into a smaller home (54% v. 41%).

“While boomers will reflect the patterns of earlier generations and mostly age in place, the sheer number of Boomers will increase demand for a whole variety of home and community options,” said said Elinor Ginzler, SVP of AARP.

According to AARP, the number of people age 65+ is expected grow to 70 million by 2030.

About the survey: The poll was conducted August 29 - Sept. 8, 2008 by Opinion Research Corporation. Interviews were conducted with 1,273 respondents age 45 to 64 using a stratified, random-digit dialing sample of US telephone households. All responses were subsequently weighted by age, gender, ethnicity, and region to be nationally representative of the US population 18+. The poll was released last year to coincide with the announcement of the 2008 Livable Communities Awards from AARP and the National Association of Home Builders (NAHB).

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