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Tuesday, November 15, 2011

Baby Boomers Impact on Housing

Another benefit of hanging my license at Coldwell Banker: Each month the brains at corporate put out the monthly Market Watch - This month's edition does a great job - not so much in reminding many of us that we are indeed getting older (it's pretty obvious each morning as I notice a new sag someplace) - but the effect the boomers have on the market.   

Here they come! Recently, the New York Life Insurance Company did a survey of Baby Boomers as they prepare to enter retirement. Here are some interesting facts surrounding Boomers.
  • Beginning in January, 2011 and over the next 20 years 78 million Baby Boomers will begin turning 65 in the United States. That’s 10,000 people a day for the next 20 years! Baby Boomers represent 26% of the US population so soon, one in four US citizens will be in retirement.
  • Baby Boomers have their own set of needs, desires and values that they will be bringing to the consumer table. 47% of them plan to downsize their home in preparation for retirement. When asked about their retirement necessities, 94% said the Internet, 60% said shopping, 51% said pet care and 47% said providing the funding of education for their children and grand children.
  • When asked about their biggest concerns as they contemplate the next 20 years, Boomers responded, health care, outliving their income and the decline or potential decline in Social Security. Additionally, 22% said that they are delaying their retirement due to current economic factors. Of those who are waiting, only 10% said that they plan to sell their home as part of their financial process of preparing for retirement.
  • The Median income of Baby Boomers entering retirement is $62,300, the highest in history, but due to life expectancies, many think it will be a challenge. Currently, the average life expectancy for Boomers is 79 for males and 83 for females, but keep in mind that’s an average and many will live much longer creating various housing needs as they age. Currently, the state with the largest number of Baby Boomers is California with 8.9 million currently in the state.
If you ask me, let's invite them to consider Arizona!  Where else can you get our lifestyle, diversity, culture and attractions?  

For more detailed information, check out...

Some good stuff.  If you'd like the latest market trends for another valley area not included above, let me know and I'll send it to you.  Watch for updates each month.

Photo from Flickr courtesy of x-ray delta one

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