Baby Boomers are poised to explode in numbers in the retiring population, changing the face of aging in America. Active Baby Boomers are typically between the ages of 47 and 54 and still in the workforce. Older Baby Boomers (56-64) are retiring early or preparing for retirement. According to an article on Realtor.com, “The Boomer Effect” by author John Van Gieson, statistics predict that 10,000 Baby Boomers a day will retire in the next 20 years. This sets the stage for a doubling of population aging in the coming decades. Due to the implosion this will create in the US economy, Social Security and Medicare, this aging baby boomer population has been dubbed the ‘silver tsunami’.
As this population ages, life expectancy is lengthening for this group in large part due to medical technology. This combination of factors sets the stage for a very particular group with specific housing needs before and after retirement.
Although some Boomers may have lost property and jobs during the recession, many kept their homes and maintained the equity in their homes. Financially secure Baby Boomers are ready to make a move or an investment. As the housing market continues to recover from the Great Recession, some of these Boomers are considering moving now. This may involve downsizing from a large family home to a property with no exterior maintenance. Meanwhile, many active Boomers looking toward retirement want second homes and investment properties.
What geographic areas in the US will the silver tsunami prefer?
Some Boomers can buy properties in Florida. But Florida will no longer be the mecca for retired homeowners, as it was for many years. Current trends indicate that this generation of Boomers will tend to buy properties in the Mid-South region in places like Virginia, the Carolinas and Tennessee.
Virginia Homes for Sale Desirable for Boomers
According to the US Census, the population in the entire state of Virginia grew 3.2% between 2010 and 2013. In my own geographic region, Williamsburg and James City County, the population grew 5.2% during the same period. Williamsburg, James City and York counties have always been popular places to retire, and statistics indicate this trend will continue. The Historic Triangle is a popular place in Virginia to buy a home because the region is family-oriented, rich in history, and has ample entertainment and dining opportunities, with easy access to larger urban areas such as Hampton, Newport News, Norfolk, and Richmond.
Virginia Recommended for Retirement by Marketwatch.com
In 2013, a writer for Marketwatch.com, a savvy online financial publication, recommended locations in the Commonwealth of Virginia as ideal for retirement. Locations included: Virginia Beach, Williamsburg, Roanoke, Winchester, and Charlottesville. Virginia’s lower property tax rates compared to northeastern states, its central location in the Mid-South (making it convenient to northern cities and states), and its mild climate with four seasons were cited as reasons to retire here.
Current Trends in Buying Real Estate for Baby Boomers: Aging in Place
The aging-in-place lifestyle is desirable to many, especially those who don’t want to end up in retirement communities, but prefer to be in their own home while they age. For the Boomer who wants to age in place, selecting the right property will allow this person this choice, without moving. First-floor dwellings with attached garages, as well as a property’s lack of exterior maintenance, are some of the hallmarks of a residence where one can easily age in place. Boomers are also looking for convenient homes for shopping, doctors, children and grandchildren.
How are the housing needs of boomers defined?
Often the housing needs of a Boomer who is nearing or nearing retirement will change. Many will require less space than the single family home once provided, perhaps considering a 1,000-2,000 square foot home instead of 3,000-4,000. Preference will be given to homes with easy entry and exit on the first floor without steps or with few steps.
For the Boomer who wishes to purchase a second home intended to be a retirement property for full-time residence at a later date, the same parameters may apply. A desirable location in a quiet area with low property taxes (perhaps even out of state) will be the most likely impetus for many Boomers to move.
As Baby Boomers mature into the ‘silver tsunami,’ life expectancies are also lengthening. So if a Boomer retires at age 60 or 65, he can enjoy another 15 to 20 years of independence, provided good health prevails. Choosing the right retirement home is an important decision that will potentially affect a Boomer for decades to come and should be carefully thought through. Trust a professional REALTOR to help you make the right decision when purchasing a retirement home.