While much attention in the rental market focuses on ‘millennials’, there is another large population segment, almost 80 million people, not to be ignored. Research projections suggest that between 8,000 and 10,000 baby boomers reach age 65 every day.
Many retiring boomers may still want the security of home ownership, but others may seek a new home for a variety of reasons. Downsizing to a smaller home with less landscaping and upkeep doesn’t necessarily mean less expensive. Some boomers eager for a lifestyle change may move to a smaller, but more expensive unit due to its location, proximity to the interests of the boomers, and tastes to make their home be the best ever.
Those caught in the economic landscape change in 2008 may need to sell their homes out of necessity to live their post-retirement years. Renting provides quick access to liquid investments that would otherwise be tied up in real estate.
Others simply don’t want to be tied down to one location. They prefer to rent homes in different locations during their retirement years. Boomers may be the first generation to abandon home ownership in favor of mobility and more freedom.
Research indicates two of the most significant factors for renters today are lifestyle and financial consideration. So what do baby boomers want in their next home? It really depends on the person, but smaller homes in a location suited for their interests, with a private retreat-like style and luxurious yet functional amenities are appealing to boomers.
The tradition of buying a house and living in it for 50 years has changed, just like interests and desires of the people who live there. Baby boomers account for one quarter of the US population. Paying attention to their housing wants and needs may be the secret to superior property investment returns in the future.
Leave us a comment! Have you seen a trend in the rental needs and wants of Baby Boomers or Millennials?