Baby Boomers, born between 1946 and 1964, now in their 60s and 70s, represent a significant portion of homeowners in the nation, and many own properties outright. Many Baby Boomers have been through several real estate cycles, and their decisions on property ownership and disposals are creating noteworthy implications for the real estate market.
For the most part, Baby Boomers in the USA are wealthy and healthy, and many are likely to live for at least another 20 years! To better understand Baby Boomers, GWI, a leading provider of consumer insights and trends offers 10 Characteristics of Baby Boomers in 2024.
With their increasing numbers and age, Baby Boomers are increasingly gaining relevance in the real estate sector. As Real Estate Advisors | REALTORS® in the Dallas-Fort Worth area, we recognize this and appreciate the significant role this demographic plays in shaping real estate market trends and opportunities, and the challenges associated with it for everyone involved, especially in Dallas-Fort Worth!
Being Baby Boomers ourselves and having had numerous interactions with Baby Boomers through a variety of real estate transactions, we have learned a lot about the trends, topics, considerations, risks, and concerns associated with Baby Boomers and real estate.
Servant leadership is one of our life goals, and a major reason we chose real estate as Baby Boomer careers. Servant leadership through real estate is one way we pay forward some of the blessings we have received and why we are so passionate about sharing our insights and experiences!
Towards that end, we believe the real estate topics outlined below will impact Baby Boomers and younger generations for years to come. We proactively keep up-to-date on the local offerings and developments associated with each and do our best to respond to demand for and around them.
Considering that these real estate related topics make for complicated and sometimes stressful experiences for Baby Boomers and their loved ones, we are sharing our "Baby Boomers & Real Estate - Call to Action!" series! For those interested Baby Boomers and/or their loved ones, we hope they will find this 15-part series offers relevant insights into, and information on, these important topics for this important demographic for 2024, and beyond. In the series for each topic, outlined below, we provide an overview, an outline of the top 10 considerations, and a suggested 10-step guide through which to navigate the experience.
Baby Boomers & Real Estate - Call to Action!
Downsizing Trend
Many Baby Boomers are starting to downsize, seeking smaller, more manageable homes. This is leading to a surge in demand for smaller properties, condos, and townhomes. Baby Boomers are also moving to smaller homes near their families and/or smaller homes in retirement communities.
Capitalizing on Home Equity
With years of homeownership under their belts, most Baby Boomers have built substantial equity. Many are opting to cash out this equity for retirement funds, either through selling or reverse mortgages. This provides great buying opportunities for younger generations of homebuyers.
Inheritance Properties
As Baby Boomers age, a significant wealth transfer is expected to occur, with many properties passing on to heirs. This influx of properties could lead to an increase in houses available on the market, potentially having a stabilizing effect on prices.
Demand for Age-In-Place Modifications
Many Baby Boomers prefer aging in their current homes, leading to a rise in demand for home modifications that accommodate aging-related needs, like ramps, lifts, wider doorways, etc. This presents an opportunity for local, reputable contractors and businesses specializing in home renovations.
Tech-Savvy Baby Boomers
Contrary to popular belief, many Baby Boomers are tech-savvy. Real estate professionals and real estate investors are leveraging digital platforms to reach this demographic effectively.
Mortgage Loans
Navigating mortgage options can be crucial for Baby Boomers looking to buy a new home, refinance their current mortgage, or explore other housing opportunities. There are a variety of options and considerations available.
Refinancing
Refinancing an existing home can be a beneficial financial move, especially for Baby Boomers looking to lower their monthly mortgage payments or access equity. There are a variety of options and considerations available.
Foreclosure
Finding oneself unable to meet monthly mortgage obligations can be stressful. For some Baby Boomers, a short sale or foreclosure might be an unfortunate reality. There are considerations and options with which to navigate this difficult situation.
Gifting
Gifting, including real estate, is a significant aspect of estate planning for Baby Boomers. It allows Baby Boomers to pass on their wealth during their lifetime.
Death of a Loved One
The death of a loved one is challenging, and dealing with real estate matters can add to the stress associated with this life challenge.
Divorce
Divorce can be a challenging life event, and dealing with real estate during this time adds another layer of complexity to an already emotional life experience.
Dementia/Alzheimer's
Dealing with dementia or Alzheimer's is challenging for all parties involved, especially loved ones, and making decisions about real estate can be complicated.
Caregiving
As Baby Boomers age, many find themselves in the position of needing care for themselves or providing care for loved ones.
End-of-Life Planning
End-of-life planning is a sensitive but crucial topic, especially for Baby Boomers and their loved ones. This includes making decisions about real estate and includes consideration for some of the above related topics.
Relationships with Real Estate Advisors | REALTORS® & Mortgage Professionals
The relationship between Baby Boomers and real estate and mortgage professionals is crucial in navigating the real estate market. There are important considerations along with a variety of options for successful collaboration.
Bottom Line
Baby Boomers have a profound impact on the real estate market, the economy, and real estate transactions, and will for years to come, especially in Dallas-Fort Worth! As we move further into 2024, understanding these real estate related Baby Boomer trends, topics, considerations, risks, and concerns can help Baby Boomers and their loved ones make more informed real estate related life decisions.
If you are a Baby Boomer, or loved ones of a Baby Boomer, and are interested in learning more about any of the related topics or just want to discuss real estate in Dallas-Fort Worth, contact us. We would be honored to assist you!
Disclaimer: This Baby Boomer & Real Estate series, the associated blog posts, and our website are not designed to and do not provide medical or legal advice, professional diagnosis, opinion, treatment, or services to you or to any other individual. Through this series, the associated blog posts, and our website, and linkages to other sites, Transformation Advisory, LLC DBA DFWREAdvisors Group, provides general information for educational purposes only. The information provided in the series, the associated blog posts, this website, or through linkages to other sites, is not a substitute for medical, legal, or professional advice or care, and you should not use the information in place of a visit, call, consultation, or advice of an attorney, mortgage professional, real estate professional, medical professional or other licensed services provider. Transformation Advisory, LLC DBA DFWREAdvisors Group is not liable or responsible for any advice, course of action, or treatment, or diagnosis, or any other information, services, or product you obtain as a result of reading this series, the associated blog posts, this website, or through its linkages to other sites.
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