Introduction: Goodbye Golden Years
Persona 1: The Multigenerational Matriarch
Persona 2: Full Service Luxury Lifestyle Seekers
Persona 3: City Slickers Turned Big Sky Adventurers
Persona 4: Downsizing Globetrotters
Persona 5: Coastal Grandmas (and Grandpas)
Key Takeaways
Previous generations described their post-retirement lives as the “golden years,” which symbolized a slower lifestyle suitable for the elderly. But this description no longer applies to the current generation of seniors, baby boomers.
By 2030, the 73 million baby boomers in the U.S. will be at retirement age, with substantial wealth. With an average net worth of $1.2 million, they hold 57% of the nation’s wealth and control more than 70% of all disposable income.*
Despite the impending “silver tsunami,” which will mark the largest wealth transfer in history over the next 15 years, baby boomers are defying traditional retirement norms. They’re living longer, remaining more active, and often delaying retirement while adapting their luxurious lifestyles to stay engaged in the workforce. As a result, baby boomers are poised to influence the luxury residential real estate market significantly for the foreseeable future.
That doesn’t mean baby boomers aren’t stuck in their old ways. In fact, many are modifying their living arrangements to suit their evolving needs and preferences, as well as those of their families. In this report, we identify five key personas within the baby boomer generation that are significantly influencing homeownership.
These five foundational personas represent a new wave of vibrant lifestyles among this demographic, redefining retirement and the trajectory of the luxury real estate market in the Americas.
*Source: GitnuxReport2024, “Baby Boomer Net Worth Statistics Showcase Wealth Inequality and Challenges.”
The combination of grandparents having been apart from their children and grandchildren during the pandemic, and many millennials and Gen Zers needing to rely on their parents to help financially with a home purchase, has had two major consequences: Many among this group of wealthy baby boomers now own multiple homes in the same neighborhood or have made adaptations to their existing homes to accommodate these needs.
The matriarch has taken the lead in ensuring the family lives close together and that each child and grandchild has a home that fits their specific needs.
The multigenerational matriarch is proof baby boomers have once again become active homebuyers, but not necessarily sellers, in the communities they’ve lived in for decades. They’re influencing the growing demand for larger, more spacious homes with the amenities to meet the needs of three generations: baby boomer grandparents, millennial children, and Gen Z grandchildren.
This group of baby boomers is already familiar with the community and typically has a strong local network (e.g., real estate agents, financial advisors and friends who may be selling their homes, etc.) already in place to help with purchasing a home.
“Wealthy baby boomer grandparents and millennial parents are selling their smaller homes and purchasing larger homes together. These homes typically have two primary suites. One is located on the first floor, with a sitting room area and a full bathroom for the grandparents. The second floor, which often includes the second primary suite, additional bedrooms, and a bonus family room, is entirely for the adult children and their family.”
Jean Cohen Advisor Engel & Völkers Duxbury
Huntsville
ALABAMA
KEY STATISTIC
Over the past year, 14% of homebuyers were motivated to purchase a home to accommodate multiple generations in their families, according to the National Association of REALTORS®’ 2023 Profile of Home Buyers and Sellers. 14%
Senior living communities aren’t what they used to be. These baby boomers seek new, exclusive resort-style developments catering to active lifestyles, socialization, fine dining, and the full scope of luxury amenities at their fingertips.
They’re willing to pay a premium to live out their later years doing what they love, whatever that may be.
Full service luxury lifestyle seekers are looking to sell their current homes and purchase smaller houses located within a tight-knit community that offers luxury amenities and requires less upkeep. These baby boomers resemble winter “snowbirds,” as they often purchase two homes, one close to their current community and the other in a warmer climate.
They have the wealth to join expensive country clubs within these communities that have golf courses, frequent social gatherings, and other luxury amenities. The expectation is that these communities will offer them everything they need at their fingertips—from health services and shopping to restaurants and social clubs.
There’s demand within this group for a country club with a golf course located within their community (56%), according to data from Golf Life Navigators. They desire these clubs to serve as a social center for dining (45%), have a pool (38%), and offer activities such as wine tastings, cooking classes, and book clubs.
What Do Full Service Luxury Lifestyle Seekers Want?
“ The full service luxury lifestyle seekers are looking at communities that offer resort amenities, cultural activities, clubs, fitness classes, walking trails, and entertainment. They don’t necessarily care about being close to the beach and most often prioritize locations near restaurants, shopping, and health services.”
Shelly Hammer
License Partner Engel & Völkers Stuart
COLORADO Stuart
FLORIDA
CALIFORNIA
KEY STATISTIC
According to the American Seniors Housing Association (ASHA), 69% of potential baby boomer homebuyers are including senior housing communities within their search.
Many baby boomers have transitioned from lives spent working in big cities or suburbs to retiring to or becoming remote workers in locations that allow them to enjoy nature and the outdoors.
Lifelong city dwellers are moving to Colorado, Montana, Idaho, and other Western destinations to take advantage of a slower pace of life and easy access to skiing, hiking, fishing, horseback riding, and other outdoor activities. With remote work becoming more normalized over the past four years of the pandemic, many of these baby boomers don’t have to wait until retirement to make this move; all they need is the space to work from home.
The trend of relocating away from crowded cities began for many baby boomers during the pandemic and has continued recently. These individuals are moving away from luxury homes in cities like San Francisco, Chicago, and New York and opting for properties in affluent, rural communities across states like Montana, North Carolina, and Colorado.
Their new homes support a more relaxed lifestyle in areas that offer local access to recreational activities such as golf, hiking, and fishing. These residences typically feature expansive properties and large living spaces that accommodate home offices for those who continue to work and provide ample room to host family visits from their children and grandchildren.
What Do City Slickers Turned Big Sky Living Baby Boomers Want?
“ These seniors are young at heart despite any physical limitations. They’re willing to explore new places, make new friends, and try new activities. They’re open-minded and eager to experience new things. Many are recently retired professionals with adequate income from multiple sources including rental properties, so they have a significant amount of disposable income and little or no debt.”
Darryl Grosjean Advisor Engel & Völkers Roaring Fork
CITY SLICKERS TURNED
BIG SKY ADVENTURERS
CANADA
Park City
UTAH
MONTANA
Reno NEVADA
KEY STATISTIC
According to the U.S. Center for Disease Control, 50% of baby boomers engage in regular physical exercise such as running, hiking, and cycling.
These baby boomers are selling the big homes in which they raised their families in favor of smaller pied-à-terres that allow them to travel the world for extended periods of time. They’re looking for fully managed turnkey properties that allow them to come and go as they please, and also present an investment opportunity to earn rental income while they’re traveling.
The globetrotting seniors are selling their family homes and purchasing smaller properties that serve as their main residences while they travel the world throughout the year. Although their new homes may have smaller footprints, they expect to have the same luxury amenities as their previous homes—and upkeep of these smaller homes usually is easier.
While these wealthy baby boomers are looking to downsize their primary home, many in this group are also in the market to purchase vacation homes or even yachts they can use for months at a time while traveling the world.
“As globetrotters who plan to travel throughout the year, they want a safe and smart home where they can lock the doors and leave. These baby boomers are starting to cut the cords with children who have been dependent on them for way too long. Retirement and travel are not the only reasons for downsizing. There is no room for the millennials to live.”
Neal Clayton
License Partner Engel & Völkers Nashville
Nashville
TENNESSEE
Indianapolis
INDIANA
Marathon
FLORIDA
Hilton Head
SOUTH CAROLINA
KEY STATISTIC
According to AARP®, 65% of baby boomers planned to travel in 2024. 65%
Not just the latest aesthetic trend on TikTok, this cohort of baby boomers refers to the grandmas (and grandpas) relocating from towns in middle America where they raised their families to be closer to their grandchildren growing up in wealthy coastal areas.
Their children are likely millennials or late Gen Xers who’ve built their wealth, and families, in coastal hot spots for tech, finance, and business like the Bay Area and New York’s affluent suburbs. These millennial children are partnering with their parents to purchase a home closer to their family, as these grandparents are eager to spend more time with their grandchildren.
The coastal grandmas (and grandpas) are selling their homes and following their millennial children across the country. As sellers, they’re leaving their homes in the communities in which they raised their children. As buyers, they’re moving into smaller homes in more affluent cities that might have a higher price point than the family homes they previously owned.
It’s important to this group that their new homes can still comfortably accommodate family gatherings of their children and grandchildren. Many of these grandparents are following their millennial children to locations that are vibrant tech and finance hubs.
“Coastal grandparents are shaping real estate trends in diverse ways. Some are moving to warmer climates and seeking larger waterfront homes with amenities like boating access and pools to attract family visits, while others are opting for low-maintenance beachfront condos that offer easy lock-and-leave convenience. In the Northeast and Northwest of the U.S., they’re purchasing spacious homes in the suburbs that offer outdoor areas for family gatherings and relaxation. But all of them have one thing in common: to be closer to their grandchildren.”
Stuart Siegel Chief Strategy Officer Engel & Völkers Americas
FLORIDA
Ninety miles is the median distance that baby boomers are relocating, the largest distance of any generation. According to NAR, they’re following their grandchildren.
It’s clear baby boomers will continue to play an important role in the North American residential real estate market during the next decade and throughout the silver tsunami. Here are five tips for real estate professionals to enhance their business as a result of these market trends:
Baby boomers will be more active buyers than previous generations. Traditionally, retirees have been known for downsizing their homes or moving into retirement communities. However, with their accumulated wealth and current market trends, baby boomers are becoming dynamic participants in the real estate market. They’re actively seeking properties that address their evolving needs and those of their families. Real estate professionals should recognize this group as both engaged buyers and sellers in the local market and target their marketing and networking efforts accordingly.
It’s a family thing—market to multiple generations. With the rise of multigenerational homes, there’ll be multiple decision-makers involved in the buying process, including baby boomers and their adult children. Marketing to these families will require understanding the diverse needs of multiple generations living together or seeking interconnected living spaces. Highlight properties that feature flexible layouts, such as separate suites or multiple bathrooms, to accommodate different age groups and lifestyles. Emphasize community features and local amenities that foster family interaction and support varying needs, from playgrounds to senior-friendly facilities.
Tap into your current network. While most baby boomers will not be first-time homebuyers, it’s likely they’re in the market for a new house for the first time in many years. Real estate professionals could benefit most by reengaging with homeowners in their communities who might be looking to purchase a new home locally. A good starting point would be to leverage your existing network by actively engaging past clients and asking for referrals, which can lead to finding potential clients who will be both buyers and sellers in your market.
Senior communities and membership clubs. Baby boomers are increasingly investing in senior living communities and country clubs, using these memberships as central aspects of their social lives. This trend offers real estate professionals valuable opportunities to connect with active baby boomers and guide them in their homeownership plans as they approach retirement. To leverage this market, consider partnering with local senior communities and country clubs. You can also promote your expertise by sponsoring social events and engaging in networking opportunities within these groups.
Keep an eye out for homes that meet client needs based on their persona group. Despite the overall trend of baby boomers staying active in the real estate market for the next decade, there are multiple personas within this generation of homebuyers, each with specific goals and plans for homeownership. It’s important to recognize the persona group that most closely matches each homebuyer and seller. You should plan to use these insights as a foundation for delivering to every client a tailored customer experience that meets their individual needs.