Published on November 18, 2019
Baby boomers are 77 million strong, accounting for 25% of the U.S. population.
So, all the “Okay Boomer” wisecracks aside, they’re still a powerful and influential generation as we head into 2020.
They control more than two-thirds of the nation’s disposable income, 70% of its financial assets, and account for 32% of our home sales. And with AARP reporting that a whopping 10,000 baby boomers are turning 65 every day, they’re rapidly closing in on retirement—if they aren’t already there.
The thing is, many baby boomers are not prepared for retirement. It’s estimated that 45% of boomers have little to no retirement savings, and worries about Social Security and Medicare have a third of boomers planning to work into their 70s.
Still, at least a quarter of the 77 million baby boomers are financially healthy, and actively seeking new housing as they prepare for their next chapter. Whether they’re finally ready for full-time retirement and complete focus on their ideal lifestyle or just want a more relaxing environment as they explore an encore career, this is where the home builder and community development industry has set its sights.
According to a recent PCR survey of its retiree and pre-retiree website visitors, interest in purchasing property in a master-planned community is on an upward trend with 73% actively researching communities online or in person.
Even more intriguing is the amount that baby boomers are willing to spend on a home in a master-planned community has been steadily rising since 2014.
The $250,000 to $500,000 price range continues to see the most growth, with the percentage of buyers looking for homes over $500,000 increasing by 5% in the past year.
It’s all about health and wellness for today’s 55 plus active adults. An overwhelming national trend, it’s swimming pools, fitness centers, and walking trails that top the list of the most sought-after amenities when considering a master-planned community.
When asked what type of community they’re looking for, the majority prefer age-targeted and age-restricted communities. Privacy and security are also paramount as 59% want to live in a gated community, and no surprise golf ranks as the third most desirable community type.
According to the survey, an astounding 75% of retiring boomers are considering relocating out of state, while just 10% plan to move to a new neighborhood in their current state. Whether they choose to stay close to home and remain near family, or move across state lines in favor of better weather, increased affordability, and lower taxes, 1 out of every 4 users will relocate after finding a community on PCR’s website.
Here’s a look at boomer relocations, showing areas of immense popularity as well as regions with tremendous growth potential.
The above relocation data was generated by Mapline, a powerful mapping software PCR uses to demonstrate the proven results produced for our community partners. It’s also a wonderful tool to help builders, developers, real estate ad agencies, and community sales teams develop and validate their marketing plans.
Each pin indicates a relocation based on discovering a community listing on PCR’s website. But perhaps more importantly, it’s a testament to the continued growth and popularity of master-planned communities among a population segment poised to remain active and engaged in the real estate market for decades to come.
To list your community or get relocation data for your region, contact PCR today!
Each year, Private Communities Registry, Inc. (PCR) reports on the Survey of Homebuyers & Renters Researching Lifestyle Communities. The report provides insight into the behavior, motivations, and financial situations of people interested in buying or renting in a master-planned community. Get your free copy of the latest Homebuyers and Lifestyle Communities Report here.