Within the next five years, more than one in five people will be aged 65+, and one in three households will be headed by someone in that age group according to the Joint Center for Housing Studies (JCHS) at Harvard University. This means that Baby Boomers will soon be the largest demographic demanding housing in the near future. Let's take a look at why… In a recent Merrill Lynch study , " Home in Retirement: More Freedom, New Choices," nearly 6,000 adults, ages 21 and older, were surveyed about housing.
On the Move
According to the study, "an estimated 4.2 million retirees moved into a new home last year alone." Two-thirds of retirees say that they are likely to move at least once during retirement. The top reason cited for relocation was "wanting to be closer to family" at 29%, while a close second was "wanting to reduce home expenses." See the chart below for the top 6 reasons broken down.
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 that 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 would 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." Not Every Baby Boomer Downsizes There is a common misconception that as retirees find themselves with fewer children at home, 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 members to move in with them. "Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations." Bottom Line If your housing needs have changed or are about to change, contact us today at 866-441-1776 so we can put you in touch with a Ruhl&Ruhl Realtor dedicated to finding you the best home for your needs! Read the rest of the Winter Seller's Guide here.