WASHINGTON, October 16, 2006 -
Baby
boomers
have
a
wide
variety
of
housing
needs
in
the
future,
depending
on
their
retirement
plans
– or
lack
thereof
–
according
to a
study
by
the
National
Association
of
Realtors®.
Most
of
the
78
million
baby
boomers
are
far
from
retirement,
with
diverse
plans
and
timelines,
resulting
in
different
housing
requirements
and
significant
shifts
from
patterns
established
by
earlier
generations.
The
comprehensive
study
is
based
on a
survey
of
nearly
2,000
American
baby
boomers
born
between
1946
and
1964
–
the
largest
generation
in
U.S.
history;
the
survey
was
conducted
for
NAR
by
Harris
Interactive®.
David
Lereah,
NAR’s
chief
economist,
said
baby
boomers
are
living
longer
and
are
different
from
previous
generations
because
they
have
no
set
path
for
retirement
and
have
more
varied
circumstances
in
life.
“The
differences
from
past
generations
–
and
between
baby
boomers
themselves
–
will
have
a
significant
impact
on
housing
needs
over
the
next
10
to
20
years
that
is
very
different
from
the
World
War
II
generation,
and
many
boomers
simply
don’t
know
how
they’ll
retire,”
he
said.
“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.”
The
median
age
at
which
baby
boomers
expect
to
stop
working
is
70,
but
27
percent
say
they
never
intend
to
stop
working.
He
said
most
baby
boomers
are
currently
in
the
workforce,
a
good
portion
of
them
have
children
living
at
home,
and
boomers
remain
a
driving
force
in
the
housing
market.
“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.”
“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,”
Lereah
said.
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.
Most
boomers
live
in
two-income
households,
with
a
median
income
in
2005
of
$64,700,
which
is
31
percent
higher
than
the
median
for
all
households.
This
generation
makes
up
37.5
percent
of
U.S.
households,
but
receives
nearly
half
of
all
aggregate
household
income.
“This
translates
into
a
lot
of
purchasing
power,
and
helps
to
explain
why
8
out
of
10
boomers
are
homeowners,”
Lereah
said.
For
baby
boomers
earning
$100,000
or
more,
the
study
shows
that
more
than
9 in
10
are
homeowners.
Among
middle-income
boomer
homeowners,
home
equity
accounts
for
fully
half
of
their
net
worth.
Even
so,
19
percent
of
respondents
are
renters,
37
percent
say
they
have
just
enough
to
make
ends
meet
and
17
percent
say
they
are
having
financial
difficulty.
A
quarter
of
baby
boomers
own
one
or
more
other
kinds
of
real
estate
in
addition
to a
primary
residence:
13
percent
own
land,
8
percent
own
rental
property,
7
percent
a
vacation
home
or
seasonally
occupied
property,
2
percent
commercial
real
estate
and
3
percent
some
other
kind
of
real
estate.
Four
out
of
10
respondents
intend
to
convert
their
vacation
home
into
a
primary
residence
in
retirement.
Analysis
by
NAR
shows
baby
boomers
are
proportionately
more
active
in
the
second
home
market,
owning
57
percent
of
all
vacation/seasonal
homes
and
58
percent
of
rental
property.
Ten
percent
of
boomers
indicate
they
plan
to
buy
some
form
of
real
estate
within
the
next
year,
which
corresponds
with
U.S.
Census
Bureau
data
that
shows
3.5
million
boomer
households
moved
during
the
last
year.
Two-thirds
are
considering
a
primary
residence,
but
the
rest
are
thinking
about
land,
second
homes
or
commercial
property.
NAR
President
Thomas
M.
Stevens
from
Vienna,
Va.,
said
the
survey
shows
most
boomers
want
professional
services
when
they
buy
real
estate.
“Baby
boomers
expect
professional
service
and
guidance
from
real
estate
agents,
and
they
value
those
services,”
said
Stevens,
senior
vice
president
of
NRT
Inc.
“When
buying
a
home,
they
want
agents
to
represent
their
interests
in
the
complex
transaction
process,
and
when
selling
they
want
help
to
establish
the
right
asking
price.
Regardless
of
whether
they’re
buying
or
selling,
boomers
want
agents
to
explain
all
of
the
complicated
contracts,
forms
and
agreements,
to
manage
the
closing
process
from
start
to
finish,
and
to
negotiate
on
their
behalf.”
Most
survey
respondents
were
unsure
of
their
financial
future,
with
three-quarters
saying
they
are
not
financially
prepared
for
retirement
and
many
expressing
anxiety
about
their
ability
to
retire.
Some
boomers
said
they
might
withdraw
retirement
funds
for
housing
or
real
estate
expenses.
Peter
Francese,
an
independent
demographic
trends
analyst
and
founder
of
American
Demographics
magazine,
consulted
on
the
findings.
“For
the
vast
majority
of
baby
boomers,
retirement
is
somewhere
off
in
the
future,”
he
said.
“Considering
that
boomers
are
healthier
than
their
predecessors,
and
are
more
likely
to
work
in
an
office
setting,
many
of
them
may
work
five
or
10
years
beyond
the
traditional
retirement
age
of
65,”
he
said.
Half
of
boomers
who
live
in
an
urban
area
would
like
to
retire
in a
small
town
or
rural
area.
Their
ideal
retirement
location
characteristics
include
a
lower
cost
of
living,
being
near
family,
quality
health
care,
better
climate
and
being
near
a
body
of
water.
More
than
a
third
of
all
baby
boomers
want
to
retire
in
an
urban
or
suburban
setting,
motivated
by
quality
health
care
and
cultural
activities.
Half
of
boomers
said
they
would
consider
living
in
an
age-restricted
community.
Given
a
longer
tenure
in
the
work
force
baby
boomers
may
choose
a
larger
home
than
earlier
generations,
speculates
Francese.
“Boomers
may
want
or
need
a
somewhat
larger
dwelling
that
includes
one
or
two
home
offices,
and
a
low-maintenance
home
on a
single
level
would
have
broad
appeal
to
this
group,”
Francese
said.
Almost
one
in
four
boomer
households
have
a
high
net
worth
of
$500,000
or
more,
and
this
ratio
is
expected
to
increase
in
the
future
as
the
generation
ages.
Virtually
all
high-net-worth
households
are
homeowners
(97
percent),
and
47
percent
are
likely
to
also
own
other
real
estate
in
addition
to
their
primary
residence.
More
than
a
third
expect
to
help
children
or
grandchildren
with
a
downpayment
on a
home.
Wealthier
boomers
want
amenities
where
they
retire,
including
cultural
activities
such
as
museums
and
art
galleries.
As a
result,
they
are
more
likely
to
retire
in
an
urban
area
or
city.
Although
most
boomers
are
married
couples
and
27
percent
have
children
under
the
age
of
18,
nearly
two
out
of
five
baby
boom
households
are
nontraditional
households,
most
of
which
are
headed
by
women.
Non-traditional
households
may
have
different
needs
and
desires
about
where
they
want
to
live.
For
boomers
with
children,
neighborhood
schools
are
of
obvious
concern,
but
for
those
without
children,
security
may
be a
bigger
issue.
Twenty
percent
of
boomer
households
are
headed
by
women,
but
because
women
aged
60
to
69
account
for
a
quarter
of
homeowners
in
that
age
group,
the
number
of
women
boomer
homeowners
is
likely
to
increase
much
faster
than
average
as
they
age.
Francese
said
there’s
little
doubt
that
the
vast
majority
of
baby
boomers
will
delay
retirement.
“Some
will
put
off
retirement
because
they
have
to,
but
many
because
they
want
to,”
he
said.
“Many
will
have
a
larger
income
stream
to
purchase
possibly
two
homes,
which
they
may
use
to
move
back
and
forth
between
their
retirement
life
and
their
working
life.”
“However,
some
caution
should
be
exercised
here
regarding
retirement
preferences,”
Francese
said.
“Surveys
of
future
intentions
often
include
a
dose
of
wishful
thinking,
and
attitudes
can
be
influenced
by
the
media
and
other
outside
pressures.
For
example,
many
are
probably
not
going
to
be
able
to,
or
even
want
to,
retire
in a
small
rural
town
far
from
their
current
home,
even
if
they
may
dream
about
it
currently.”
Preliminary
study
results
were
released
May
18
at
NAR’s
Midyear
Legislative
Meetings
&
Trade
Expo,
with
a
focus
on
the
real
estate
and
second-home
appetite
of
boomers.
The
more
extensive
analysis
released
today
is
also
supplemented
with
context
and
data
from
the
Census
Bureau’s
mid-2006
estimates
of
population
characteristics;
it
offers
an
abundance
of
information
helpful
for
planning
to
Realtors®,
builders,
mortgage
lenders
and
others
connected
to
the
housing
industry.
The
survey
for
the
2006
National
Association
of
Realtors®
study,
BABY
BOOMERS
AND
REAL
ESTATE:
Today
and
Tomorrow,
was
conducted
online
by
Harris
Interactive®
between
March
31
and
April
6,
2006,
among
a
nationwide
cross
section
of
1,969
U.S.
adults
born
between
1946
and
1964.
Figures
for
age,
sex,
race,
education,
region
and
household
income
were
weighted
where
necessary
to
bring
them
into
line
with
their
actual
proportions
in
the
population.
With
95
percent
certainty,
overall
results
have
a
sampling
error
of
plus
or
minus
2.2
percentage
points;
the
sampling
error
for
various
sub-sample
results
is
higher
and
varies.
The
study
can
be
ordered
by
calling
800/874-6500,
or
online
at:
http://www.realtor.org/babyboomerstudy.
The
cost
is
$50
for
NAR
members
and
$125
for
non-members.
Harris
Interactive
Inc.
(www.harrisinteractive.com),
based
in
Rochester,
N.Y.,
is
the
12th
largest
and
the
fastest-growing
market
research
firm
in
the
world,
most
widely
known
for
The
Harris
Poll®
and
for
its
pioneering
leadership
in
the
online
market
research
industry.
The
National
Association
of
Realtors®,
“The
Voice
for
Real
Estate,”
is
America’s
largest
trade
association,
representing
more
than
1.3
million
members
involved
in
all
aspects
of
the
residential
and
commercial
real
estate
industries.
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