Real Estate Agents at Sage Realty LLC Discuss Demographics of Recent Homebuyers
Baby Boomers are considered the generation of people that were born approximately between 1946 and 1964. Baby Boomers are a large percentage of the population—smart, savvy and living longer than ever. Baby Boomers have also become the biggest competition for Millennials in the housing market. With more than 70 million boomers retiring at a rate of about 10,000 people per day; mom, dad, grandma or grandpa may be the toughest competition for starter-sized homes, apartments and condos; especially in urban areas.
Sage Realty LLC will provide you with an experienced real estate agent who can provide advice on how to negotiate the best price when purchasing homes for sale in the Main Line area.
A Downsizing Generation
A smaller home often equates with more free time. Some of the reasons baby boomers are swapping large family houses for reduced living spaces in the busier urban hubs are less time spent cleaning, less yard space to maintain and easier access to activities and services located in metropolitan areas. The generation now desires to live in or near communities that provide plentiful amenities. Boomers welcome the lifestyle change that gives them more free time to pursue their interests.
Baby Boomers have helped breathe new life into the housing market. Millennials often do not have the means necessary to compete with them in the housing market. Baby boomers are willing to pay premiums, high rents or whatever it takes to move into the new neighborhood multifamily dwelling. In turn, Millennials are still trying to recover from entering the job market during a recession.
What does it mean for the Housing Market?
As more boomers move into the condo and rental market, Millennials will have to get more creative with their own housing situations. According to Bloomberg Business and The Atlantic, buying a home is better and more affordable than renting in the current market climate (in most situations). The biggest roadblock is access to savings for emergency funds and down payments.
Boomers have also affected the drive to create more apartments and condos. Government data shows a marked increase in permits to build multifamily homes.
What constitutes the American dream has changed for many retirees. Simplicity seems to be the mantra of the baby boomers. The good news is, as the economy improves, Millennials will have more of a chance to achieve their housing goals as well. For more information on purchasing or selling a home in the Main Line and Wayne areas, contact a real estate agent from Sage Realty at 610-687-4000.