Baby boomers flex their real estate muscles into retirement

by _____________________________________________
President, _________________________ Board/Association of REALTORS

While their parents were the "greatest generation," baby boomers are certainly the greatest real estate generation, according to a survey by the National Association of REALTORS (NAR). The baby boom generation has a higher rate of homeownership than the national average which gives them a strong reputation for investing in real estate. This pattern of savvy investment in real estate may be the best approach for the boomer generation as they prepare for their retirement.

Flexing their real estate muscle, these 77 million baby boomers, or 35 percent of all U.S. adults, are in their peak earning years. Generally, as the top breadwinners in the American economy, baby boomer households, or those born between 1946 and 1964, have a strong relationship to their home and consider housing and real estate to be their best financial investment. Nearly eight in ten boomers own their own homes and almost nine out of ten have owned at some point in their lives.

As baby boomers look to retirement, 53 percent say they are financially weak. Three in four boomers say they are not financially prepared for retirement and many plan on working as long as they can, according to the NAR survey. Throughout their earning years, boomers have indulged in real estate as a way to invest their money. Knowing that homes values rise over the long term, a high percentage (96 percent) of baby boomers believe that owning a home is like money in the bank and a good investment that will pay off in retirement.

"When boomers plan for the next stage in life, they may search for a new home or multiple homes," said ___________________________, president of the _____________________ Board/Association of REALTORS. "REALTORS understand that baby boomers value the wealth gained from owning real estate and can help them capitalize on their investments."

Where do these boomers plan on putting down roots? Most boomers want to retire to a rural area (33 percent) or a small town (30 percent). According to the survey, 52 percent of boomers would not consider living in an age-restricted community.

The NAR survey also found that one in four boomer households owns more than their primary residence. This generation takes a very active role in the second home market, owning 57 percent of all vacation homes and 58 percent of rental property. Four out of ten who own a vacation home intend to someday live in their investment property. By owning a second home, this generation has extended its retirement options beyond the standard 401(k) and pension plans into real estate.

Because real estate plays a significant role in the boomer lifestyle, this generation wants and expects expert advice from REALTORS who can help them save time and money in planning their next real estate transaction. Eight out of ten boomers used a real estate agent the last time they sold a home. Baby boomers know the value of what a REALTORS can do – the ability to establish the right price, show the home and negotiate all offers.

"REATLORS have the necessary expertise to represent the interests of the baby boomer who is seeking to gain a leg up on retirement by making an investment in housing," ___________________ (president name) said.

The service provided by a REALTOR during a housing transaction not only secures a home for purchase, but also secures a nest egg for the future. Contact (name of local/state association) for a list of REALTORS in your community.