Baby Boomers...Home is where the heart is
Within the next 5 years, Baby Boomers are projected to have the largest household growth of any other generation during that same time period, according to the Joint Centers of Housing Studies for Harvard.
Let's take a look at why in Merrill Lynch's study "Home in Retirement: More Freedom, New Choices" they surveyed nearly 6,000 adults ages 21 and older about housing.
Crossing the "Freedom Threshold"
Throughout our lives, there are often responsibilities that dictate where we live. Whether being in the best school district for our children, being close to our jobs, or some other factor is preventing a move, the study found that there is a substantial shift that takes place at age 61. The study refers to this change as "Crossing the Freedom Threshold". When where you live is no longer determined by responsibilities, but rather a freedom to live wherever you like.
As one participant in the study stated, "In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn't been another time in life when we've had that kind of freedom."
On the Move
According to the study, "an estimated 4.2 million retirees moved into a new home last year along." Two-thirds of retirees say that they are likely to move at least once during retirement. The top reason to relocate cited was "wanting to be closer to family" at 29%, a close second was "wanting to reduce home expenses." See the chart below for the top 6 reasons broken down.
Not Every Baby Boomer Downsizes
There is a common misconception that as retirees find themselves with less children at home that they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.
Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family member to move in with them. "Retirees often find their homes become places for family to come together and reconnect, particularly during the holidays or summer vacations."
Article submitted by:
Teri Tennyson, Broker, Senior's Real Estate Specialist
Sterling Property Group
9226 Bayshore Dr. NW Suite 140, Silverdale