Tomorrow’s retirees will completely transform the housing industry from renting to buying to where and when they decide to live, according to a new study from John Burns Real Estate Consulting. Only 10 years ago, 2.2 million people were turning 65 each year. That number has surged to 3.5 million this year and will grow to 4.2 million in 2025!.
By Lesley Deutch
Tomorrow’s retirees will completely transform the housing industry. We have done a tremendous amount of research on this group, all of whom were born in the 1950s.
We call them the Innovators because they have created so many innovations throughout their lives. They are:
- Tech savvy, which began with their space race fascination as kids
- Family-oriented, with almost 50% reporting that they intend to live with their parent or adult child in the near future
- More affluent than any prior generation of retirees, thanks to:
- Careers that perfectly coincided with a strong economy
- A workaholic attitude that led to more double-income households and delayed retirement
- 80% homeownership, with the majority having no mortgage today
- 30 years of falling interest rates boosting home values and retirement accounts
Baby Boomers next housing move
Illustrated photo ©Monkey Business Imagines via Canva
All of these factors above will play into the Innovators' next housing move. They will:
- Innovate retirement to be more about health, family, experiences, and continuing to work
- Move several more times, including selling their home and moving into a rental in an urban area that is walkable to entertainment
- Focus more on living near their kids, with huge rewards to the builders who sell multigenerational-living homes that satisfy Innovators' needs
- Continue migrating south, but not just to the traditional retirement areas, as they will want to be near their kids and a job.
The chart above comes from our upcoming book The Big Shifts Ahead: Demographic Clarity for Businesses and shows how dramatic the retirement surge has been recently—and will be in the future.
I manage our consulting operations in Florida, and we are busy analyzing all types of successful projects targeting retirees up and down the state, from family-oriented communities with a retirement component (Del Webb Ponte Vedra, Heritage Isles, and Valencia Bay) to traditional active-adult communities at all price points (Solivita, On Top of the World, and Pelican Preserve).
For more information, please contact Lesley Deutch at firstname.lastname@example.org (mailto:email@example.com) or 561-998-5814.
This article courtesy of John Burns Real Estate Consulting.
About the Author:
Lesley leads all custom consulting projects in Florida, in addition to commercial real estate assignments. She has more than 20 years of experience in real estate and economic research. Before joining John Burns Real Estate Consulting in 2008, Lesley served as Senior Research Manager for Montecito Property Company’s Strategic Market Intelligence Group, and was a Principal of Focus Real Estate Advisors. Prior to that, she spent eight years on Wall Street working in public finance for Lehman Brothers and as a Vice President in the Global Real Estate division of Bankers Trust and Deutsche Bank, where she authored reports on real estate and economic conditions in the major US metropolitan areas and conducted due diligence for the investment bank, the CMBS team, and the Deutsche Bank Mezzanine Fund. She then moved to the research team at RREEF (owned by Deutsche Bank), writing quarterly updates on RREEF’s existing properties and due diligence reports for acquisitions on the East Coast. Lesley has a B.S from the Wharton School and a B.A. in Economics from the University of Pennsylvania, and works in our Boca Raton, Florida office.In her free time, Lesley enjoys running, cooking and spending time with her family.