BOOMER
POWER T
alk of the millennials has dominated much of the conversation around real estate over the past couple of years, but what about the baby boomers? Is this group still influencing real estate markets – how?
FIRST – THE MILLENNIALS Millennials are generally said to be 1980 to 1996 born. They make up the largest proportion of Australia’s population at 22 per cent and account for 35 per cent of the workforce. Social demographer, Bernard Salt recognised a change through the pandemic. Many millennials whose careers had led them to inner city apartments in their 20s were now leaving these areas ahead of their time. Now that they can live anywhere with reliable broadband, millennials are buying homes where they can put down roots long term as they work from home and grow their families. One economist has said there won’t be enough homes to meet millennial buyer demand. Not the time for sitting on your haunches, perhaps?
THE BABY BOOMERS A Baby Boomer is generally said to be someone born in the years following World War II, between 1946 and 1964, a period known for a sudden increase or ‘boom’ in the world’s birth rate. There have been questions around what might happen in the real estate market in the coming decade or so when around 5.3 million retire, those that haven’t already. Of the roughly 24 million people in Australia, about 22 per cent are between the ages of 55 and 73, meaning baby boomers still make up a sizable portion of the population. And they are not happy to fade into the background! Research says that baby boomers are feeling more confident in using new technology and that 92 per cent want virtual options on property viewings to continue even after the pandemic is over. Also interesting is that one quarter of Australians are banking on the inheritance from baby boomers who are expected to pass $3.5 trillion on to their children in the next 15 years. Best not to rely on it though, Millennials! Given that baby boomers are the generation with the most real estate wealth, it is understandable that they have a major influence on the rental and housing markets. Baby boomers have been drawn to a maintenance-free lifestyle, the ability to relocate with ease, and opportunities to socialise among other reasons. One study even found that a significant percentage of baby boomers were hesitant to follow the pattern of past older generations and downgrade space, move in with family, or move into assisted-living facilities.
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Baby boomers still like to party!
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Baby boomers clearly still have the capacity to affect housing markets. In 2029, the youngest baby boomers will have their 65th birthdays and the oldest their 83rd. Baby boomer investors – what are they buying? Keep the following in mind if you are a baby boomer or wanting to attract the boomer buyer: LOCATION Location is crucial, but they may seek inner or near-city residential options rather than move away from their capital city. ONE LEVEL HOMES AND LOW-RISE APARTMENTS They prefer single level; and while lifts give access to high rise apartments and multi-level homes, low rise is a winner. MODERN FACILITIES AND AMENITIES Newly refurbished properties with contemporary equipment and lifestyle features have great appeal. FLOOR PLAN The well-thought-out floor plan is essential, with well-placed and easily negotiated stairs and wide doorways and hallways. WORK AND RECREATION Many are likely to juggle work and retirement well into their 70s. They want the home with an office and high-speed internet connection along with a work-out space and manageable garden. Home is for work and play. Baby boomers want to enjoy life as they did in their 50s. PARENTS AND/OR ADULT CHILDREN Forget the stereotyped ‘old generation’. Baby boomers’ parents may still be living, so homes with a granny flat or similar might serve them well. And they appreciate privacy when children and grandchildren visit.
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