Baby boomers intent on trading up as they age

By MIKE KRUSE, President
Home Builders Association of Midwest Georgia

The U.S. population of 77 million baby boomers — those born between 1946 and 1964 — are a growing market force in the housing industry, according to speakers at the National Association of Home Builders’ (NAHB) recent Building for Boomers and Beyond Seniors Housing Symposium in Chantilly, Va.

Experts at the symposium reported that the 50 plus population is looking for new housing, but not within the context of retirement traditionally associated with this age group. And although it is difficult to make generalizations about this independent minded generation, they said, by and large aging boomers do not see themselves trading down but instead expect to be moving up to the best housing they have ever had, even if it means taking out a hefty mortgage to finance their lofty housing aspirations.

The home buying preferences of this segment of boomers is consistent with what NAHB is finding in overall home buying trends in which given the choice of more space or higher quality features, new home buyers are overwhelmingly opting for the latter. When asked to choose between a bigger house with fewer amenities or a smaller house with high-quality products and amenities, 63 percent of the homeowners surveyed (representing a variety of age demographics) by NAHB favored downsizing to the home with the bells and whistles.

A study conducted by Countrywide in conjunction with NAHB two years ago found that one-fourth of home buyers aged 50 and older were paying more for the home of their golden years than for their previous home, and their new homes were likely to feature next-generation amenities like structured wiring and exterior maintenance services.