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Baby Boomers’ Changing Housing Needs Make Them Driving Force in Housing Market

Baby boomers are living longer, and unlike previous generations, most of the 78 million baby boomers in the U.S. are far from retirement and have more varied circumstances in life. As a result, they face a wide variety of housing needs in the future, according to a study by the National Association of Realtors®.

The comprehensive study, conducted by Harris Interactive, is based on a survey of nearly 2,000 American baby boomers born between 1946 and 1964 – the largest generation in U.S. history.

Many baby boomers are currently in the workforce. The median age at which baby boomers expect to stop working is 70, but 27 percent say they never intend to stop working. A good portion of them have children living at home, and boomers remain a driving force in the housing market. 

“Many boomers simply don’t know how they’ll retire,” said David Lereah, chief economist for the National Association of Realtors®. “A significant portion of baby boomers married later in life and had children at a later age, which means many will continue to work beyond the traditional retirement age. Older boomers are thinking about retirement, but one-third expect to go back and forth between periods of work and periods of leisure, and another 35 percent want to work at least part-time or start a business – all of this will have an impact on the kind of homes they buy as well as where they buy them.” 

Silicon Valley Association of Realtors® President John Tripp said, “When boomers plan for the next stage in life, they may search for a new home or multiple homes. We are recognizing baby boomers as more inclined to own second homes as investment property, a place for eventual retirement and ‘a home away from home.’”

California Association of Realtors® Vice President Leslie Appleton-Young recently told members of the Santa Clara Valley Chapter of the Women’s Council of Realtors® that baby boomers “are buying homes now as retirement and investment properties sooner, and more of it.”

“Baby boomers love real estate,” Appleton-Young added.

“Just over a quarter of the boomer generation is aged 55 to 60, which is when many people traditionally begin to focus on their retirement plans, but analysis of the survey suggests they are more likely to stay in the workforce longer and will be less likely to downsize than previous generations – the leading edge of the boomer generation is the key to future housing impact,” Lereah said. “Because they will be in the workforce longer, boomers will postpone purchase of retirement property and won’t be making those moves as early as assumed.”

Forty-two percent of survey respondents would like to retire in the South, 32 percent in the West, 15 percent in the Midwest and 12 percent in the Northeast. 

“This tells us that the Sunbelt will remain a traditional draw for retirees,” Lereah said.

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.

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