Baby Boomers Are the Generation Investors Need to Pay Attention To
Millennials are an important renter and buyer demographic, but they aren’t the only group out there that investors and landlords need to target. In fact, while they may be the largest, they aren’t the mightiest. That honor goes to the largest demographic of the last 50 years: Baby Boomers.
Baby boomers are moving all across the country, in search of places with new things to see, new people to meet, and new places to live. They are retiring in record numbers, selling their own homes, and taking off to live places for just a few years.
In the coming year, there will be some 80 million baby boomers retiring, but most of them will not be financially ready to retire. They are looking to live their lives, have some fun, but not spent all of their pension checks on rent.
Moving Forward
Baby boomers will still move, however. They saw their parents stay home and not do anything in their final years, and they are worried about doing the same thing. Their children are grown, they don’t want to spend their time taking care of their homes or their yards, and they are ready for a change. The Freddie Mac 55+ survey recently found that baby boomers are on the move – and they don’t plan on buying, they want to rent.
In that survey, 71% of people over the age of 55 who plan to move again say that they will rent. For many, it is because this is what makes financial sense. Others said that it gave them the freedom that they wanted. Even more suggested that it was because they didn’t have to “worry about” things going wrong like they did with their own home.
Some of the most important factors for baby boomers include affordability, amenities for people who are retired, having a property maintenance staff, and having a walkable community. While some of them are looking to move somewhere warmer, many want to move somewhere close by where they are family and friends.
Real estate investors need to chase after these baby boomers and cater their offerings to the lifestyles of them. If you don’t, you are missing an opportunity.
Where to Go From Here
For investors, it should be common sense what to do: find a way to target the Boomers. The demand will be so high soon that apartments and homes will be flying, especially in suburbs of larger cities. You have to look at the apartments you have now: are there steps? How large are they? How close is the residence to the local grocery store? The pharmacy? A medical center?
Of course, you can’t only market to boomers. However, they are going to be a huge part of the dynamic for the next 20 years, or more. You will have consistent renters for almost two decades if you play your cards right – something you won’t find with millennials. Of course you will have to do some research, but most cities will see an influx in Boomers moving in and out of their residences.
Note that we can’t always predict how people will move, and we may be wrong. Perhaps Boomers will decide that renting is wrong for them and stay put – you never know. Still, Boomers tend to be predictable and they are looking for that active lifestyle that renting allows without owning.