The Demand Institute recently published a new report titled Baby Boomers & Their Homes: On Their Own Terms. There is some interesting stuff for the senior living sector. Here are a few of the highlights:
- In spite of having had to radically rethink retirement and housing plans, they will still account for $1 out of every $4 spent on home purchases in the next five years.
- Most are planning to age in place (meaning likely fewer will move to Sun Belt states).
- Many will move into smaller more budget-based homes and will be willing to take out a new mortgage to pay for that purchase.
- Most Boomers still hope to retire in their 60s. Whether they will actually be able to do so is still a big question.
- Three-quarters of Baby Boomers have already suffered a major health incident or have a chronic health condition.
- Most Boomers plan to stay put in retirement but 37% plan to make a change; 46% of those are looking to move up in their next home purchase either in size or amenities.
- Only 1/3 of those who plan to move are expecting to move out of state. More than half expect to relocate within 30 miles of the present home.
- Boomers are less afraid of debt than earlier generations.
- Only 20% of Boomers want to move to senior-related housing or active adult communities.
It seems pretty clear that we Boomers, even in our 50s and 60s, are still dreamers. It seems likely that many of the plans Boomers have for themselves will collide with reality as they age and can’t continue to work. It is yet to be seen whether Boomers will quietly settle for less or push hard for government help.
The report says that “only 20% of Boomers want to move into senior-related housing”. The institute may see this as a discouraging number, but the Silent Generation (those living in senior living today) seem to be choosing senior living options at a rate that is closer to 10%.
What do you think?