The baby boomer liquidation sale isn’t panning out just yet. There are boomers buying a bigger homes to house multiple generations, and there are those who want to enitce more visits from the grandkids. From nbcnews.com:
Homeowners’ post-recession fling with smaller dwellings has fizzled, and Baby Boomers aren’t downsizing as expected.
Real estate site Trulia found that 43 percent of more than 2,000 online survey respondents want “somewhat” or “much” bigger homes than their current residences. This might be expected among younger adults with growing families — more than 60 percent of respondents under 35 want a bigger home — but even their parents still feel cramped.
Although Boomers are most likely to be satisfied with the size of their current homes, the conventional wisdom that these empty nesters would downsize to smaller homes later in life turned out to not be the case. “It is a bit contrary,” said Trulia housing economist Ralph McLaughlin. “According to our survey, we are finding that almost as many of them want larger homes.”
While 21 percent of Baby Boomers want a smaller house, the highest percentage of any age bracket, the number who still want to go bigger is five percentage points higher. Last year, Fannie Mae noted that Boomers displayed no hurry to trade in their houses for retirement condos.
“It is pretty surprising,” McLaughlin said, adding that there are probably multiple explanations for the enduring preference for bigger homes. Retiring Boomers may be moving out of urban areas and into communities where they can get more square footage for their money. They might want larger spaces so their kids and grandkids can come visit without feeling cramped.
Or, they might not want to give up their toys just yet. “It could also be the case that Boomers are also going to stay more active and need space for all the activities they stay engaged in,” McLaughlin said.
I have yet to run into a boat owner who wanted a smaller boat as well.
I predict big single level homes will be in demand for boomers even if they have to move inland to afford them.
The new reverse mortgages will be a large enticement to stay put as will IMO.
Whereas before you were for the most part forced to sell to retire (for a good size percentage), the RM’s give an opportunity to hang on.
Too much stuff. Boomers grew up accumulating and haven’t yet gotten to the point where the costs of holding are enough to get them to change. The coming generations are nowhere near as attracted to amassing stuff. Thus there is little chance of even giving it away.
Boomers can’t move because their kids have moved back in.
RobDawg, couldn’t agree more. Baby boomers are the product of decades of indoctrination in consumerism. They weren’t taught to consume less, it was always bigger/better/more. The thought of having less/smaller/worse is well, unthinkable.
I think the younger generations are turned off by that mindset, unless it involves getting a “better” cell phone. haha
Hmmm.
I guess there’s nothing as interesting as getting a bigger house to attract your grandkids and bring your family closer by securing a reverse mortgage.
I’d love to be at the thanksgiving dinner where that’s announced. Preferably just before they start carving the turkey. Then I could watch everybody at the table just glaring at each other.
Seriously the generation that brought you earth Day LOL.
We are are more alike than you think.
Boomers were raised by Depression era parents. You painted, then carefully cleaned the brush with water and “turps” then hung it up to dry bristles down. These days a jobber brush is $2 and the cleaning chemicals would cost twice that and be nothing you want down the drain anyway. You can’t even hardly get turpentine anymore.
Or a more subtle example. In my particular ghetto the shacks run a modest $400/sf. Send the tube TV off to Goodwill and buy a flat screen. Free up more than $1000 worth of space.
Yes, I have a drawer of used paint brushes and an old TV. Speaking from experience.
Hey Jim? How many coffee cups do you have? How many do you -need-?
Several dozen, just in case!
Load them up with shrimp and hold a bring your own minivan pool party! Invite the Sheriff this time.
This boomer and the hubby are leaving the large single level house in the IE and moving to a place half the size in the OC. It’s a place with stairs, but the width and straight rise easily accommodates a stair lift, should that ever be necessary. The most difficult part of selecting a home was finding one that would accomodate the baby grand piano and still give us sufficient living space.
It has been interesting giving away quantities of very nice furniture and household goods to the kids and the thrift store. It makes us wonder why we thought we had to have it and what we were thinking as we accumulated more and more. We cleaned out the house 2 months ago and have lived with what we intend to take along. We found we didn’t use and don’t miss all the stuff we got rid of.
We’re tired of commuting miles to cultural events, various musical clubs, and the grandkids’ sports and school activities. The family hates commuting out here on holidays anyway. We’re tired of garages and yards and cleaning 3 toilets for 2 people, of chain restaurants, limited choices of medical services and specialists, chain restaurants, and (gasp) of the cultural nexus of wineries + jazz exclusively.
No aging in place for us. Freedom, here we come!
I live in CV, neighborhood was built in the 80’s. Lots and lots of Boomers, and I have not seen a lot of For Sale signs since moving there 3 years ago. I am seeing more remodel projects than For Sale signs. Couple of houses on my street with post-college kids moved back in and another few with kids and grandkids moved back in.
I’m sure there are Boomers that are downsizing, but not where I live. And not a single Boomer in my family has downsized. You could not get my grandparents out of their houses and apparently it runs in the family.
Jiji, I’m not bashing baby-boomers, just merely stating my opinion regarding consumerism. Certainly you could very well be right that millenials will be just like the boomers but the evidence doesn’t support that as of right now.
Earth Day? that started in the early 70’s, so yes definitely a boomer phenomenon however I don’t understand how that makes the 2 generations “more alike than you think”.
No_techie, what a very refreshing comment! You seem to be in the minority, at least so far.
“more than 60 percent of respondents under 35 want a bigger home”
I think under 35 means “millenials” but maybe I am wrong.
Most of the “millenials” in my company drive Mercedes and BMW’s,
I drive a Hyundai (your right maybe we are different).
My mother in-law fully intends to age in place. However, even her “quaint” 1800 sqft two story home is too big for just one person. She wants to age in place because she is still active in the community that she has resided in for the past 35+ years. Moving is not an easy thing to contemplate.
On the other side, my mom has always been a sort of vagabond with reclusive tendencies. Therefore, she had no problem packing up and moving to another state by herself when she retired.
There is my two wooden nickels on the subject.
@Jiji
“Most of the “millenials” in my company drive Mercedes and BMW’s, I drive a Hyundai (your right maybe we are different).”
Have you seen the price of Hyundai lately?? yikes!!
I should have clarified,
I drive a Hyundai I bought used LOL.