Baby Boomers Make Real Estate a Priority

By Mary Damiano

Baby Boomers—those Americans born between 1946 and 1964—have a passion for property that surpasses previous generations.

A new study conducted by Harris Interactive and sponsored by the National Association of Realtors shows several trends in baby boomer’s real estate patterns:

Four out of five boomers own a home, while one in four also owns a secondary property, such as acreage, one or more vacation homes and rental property.

Baby boomers’ home equity represents a significant portion of their net worth, and plays a role in their well-being and financial planning. Among boomers 50-60 years old, 36 percent report that the equity in their primary residence is more than 51 percent. Thirty-eight percent of boomers 42-49 years old report the same.

Boomers believe in accumulating real estate longer, even as they head toward traditional retirement age. One in four boomers aged 50-60 say they will likely buy more real estate in the next 12 months. In boomer households in which the yearly income is $100,000 or more, the number jumps to 37 percent.

Aging boomers also have different housing needs than previous generations. Thirty percent of boomers aged 50-60, still have at least one adult child living at home. Sixty percent of this age group also have aging parents who need assistance. Many boomers intend to work past traditional retirement age, and many plan to start new businesses. This means that residences not only need to be larger to accommodate family members, but one or two home offices or workplaces.