The coming wave of baby boomers is one of the biggest reasons the senior housing industry has been revving up over the last few years. As 10,000 Americans turn 65 every day, there is a huge opportunity for senior housing businesses to capture a portion of this group, especially as they make housing changes for retirement.
Retirement is a key trigger for moving decisions, and many plan to switch up their location upon entering the Golden Years. For senior living providers, the good news is that a large chunk of baby boomers—32 million, or 42% of all baby boomers—plan to move, either upsizing or downsizing, according to a recent report by Metrostudy.
While it might be plausible to think that seniors want to downsize in retirement, the biggest motivator behind moving is area and location; half of boomers said so. Price/affordability was also an important factor, with 37.4% saying is was a top motivation for moving, while 19% said the layout of a home influenced their choice.
While some baby boomers plan to move in retirement, there are many more who say they want to age in place, according to metro study. However, this option may not be plausible for all baby boomers, as many home lack accessibility and require lot of maintenance and upkeep. Just 62% of homes are single-story homes; only 45% of baby boomers describe their home as being easy to maintain and upkeep; and only 27% have accessibility features for those with special health needs, according to metro study. Many more baby boomers may have to end up moving.
As boomers seek to change their lifestyles during retirement, home sales will likely increase, unlocking a huge source of equity. Baby boomers hold about two-thirds of the nation’s home equity, about $8 trillion, according to Metrostudy.
Perhaps unsurprisingly, Florida is a top destination for baby boomers who move, as are other regions with milder climates, according to baby boomer new home sales data:
Written by Amy Baxter