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As Baby Boomers enter their late 50s and early 60s, many are finding themselves contemplating the vast changes in lifestyle that come with this stage of life.
One of the most significant shifts is taking place in the housing market as members of this influential generation take charge and purchase single family homes.
To better understand why these sophisticated buyers view homeownership as such an essential piece of their golden years’ puzzle pieces, let us explore 12 reasons why Boomers today are snatching up single family residences all across America!
#1. They Want a Vacation House
Many people fall in love with a location after vacationing there.
In some cases, they will continue to come back, year after year.
Eventually they get to the point of realizing it would be cheaper to buy a house there rather than rent, so they put down roots and purchase a home.
#2. More Control
Living in apartments, HOA communities, and other places don’t allow the people living there much control.
They are told what they can and cannot do, and many Boomers are tired of this.
They want to add features to their house the HOA won’t allow.
Or they simply want to build equity, which cannot be done renting.
#3. A Desire to Be Closer to Family
Many families grow apart with time, especially as children move away and start their own lives elsewhere.
Unfortunately, for parents, that means spending much time away from their children and other family members as they need to work and keep up with their homes.
But once you retire, you can move around to get closer to your family.
This often happens when boomers can finally escape their current living situation.
After all, why not move closer to your family so you can see them more often rather than stay in a place that is too far away from everyone?
#4. Investment Purposes
The elephant in the room should be addressed.
A lot of people know or believe that boomers with the income to stock up on single-family homes are doing so for investment purposes.
In some cases, boomers might be doing exactly what people are critical of, buying up single-family homes so that they can rent them out or use them for platforms like Airbnb.
That said, some others are investing in an asset that they know is not likely to plummet in value any time soon, helping to protect some of their wealth.
Regardless of the reason, homes are always investments.
#5. Planning for the Future
Boomers aren’t getting any younger and need to think about the future too.
Some older people can’t get around their homes as well as they used to.
Multiple stories can be tricky to navigate, and older homes may require too much care for older people to keep up with.
As such, some boomers will buy a single-family home to age in safely.
These new homes are likely much easier to navigate, and they can use the extra cash to invest in aging-in-place renovations to use their homes comfortably.
#6. Getting Away From HOAs
When you’re younger, an HOA might sound great.
You have set rules in place, you don’t have to worry about rowdy neighbors, and everything is as it should be.
Once you get older, however, HOAs can be a pain to navigate if you wish to renovate or do something the neighbors won’t like.
Boomers who previously dreamed of an HOA might buy a single-family home to get away from that so they can do what they please with their property.
#7. Multi-Generational Living Is on the Rise
Boomers aren’t always buying single-family homes to generate more income or add another home to their roster.
Some need the extra space because of economic hardship.
While it sounds illogical upfront, buying a home you can share with children and grandchildren might be the best option for some family units.
Children can pitch in financially, and regarding helping their parents around, parents can secure housing that’s more stable for their children, and everyone benefits.
In the current economic state, multi-generational living is on the rise, which could be why some boomers are getting their own single-family homes.
#8. They’re Looking for the Extra Space
Smaller homes, condos, and apartments can fetch a great price in this housing market.
Boomers can then take the money from the sale, move somewhere their dollar stretches a bit further, and purchase a house with much more space.
Whether they need that extra space so that children and grandkids can visit, enjoy activities that require more space, or have room for an office and other areas, this is a good reason for them to buy a new home.
#9. Only Their Generation Can Afford It
The income gap is the widest it’s been, and those who could take advantage of a better economy and better opportunities naturally have more cash in the bank.
Boomers are buying up single-family homes because they’re one of the few generations that have a ton of disposable income they can use to buy up these homes.
Some don’t necessarily have a specific reason for buying single-family homes, while others might have reasons like the ones listed below.
#10. Because They’re Not Fans of Senior Living Communities
Senior living communities are designed for older individuals looking to age in place with peers who are around their own age and share their values.
That can sound like a dream to some but a nightmare to others.
Those who don’t like senior living communities may instead wish to move to a single-family home where they can create their own communities and enjoy life according to their standards rather than the standards of a senior living community.
#11. They’re Looking to Upgrade Their Current Quality of Living
Not all boomers are necessarily living it up.
Some might be stuck somewhere they don’t want to be, trapped in a housing situation they don’t like, or even in a place in life where they need major change and overhaul to get to where they want to be.
As such, plenty of seniors are buying single-family homes to improve their quality of living and fulfill their dreams.
#12. They Want to Downsize So They Can Afford Other Things
Life today is expensive, and any cash infusion is greatly appreciated by anyone who can get their hands on it.
Some boomers are selling their current homes and moving into single-family homes so they can walk away with a good chunk of change that they can use for other things.
Some might be looking to pad their retirement savings, while others might want to go on vacations, purchase things for their homes they otherwise couldn’t afford, and enjoy other aspects of life.
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This thread inspired this article.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
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