March 1st, 2012
Baby Boomers – those between the ages of 47 to 65 – are in the best position to buy real estate that they’ve been in in years, according to a spokesperson for the National Association of Realtors, and could help revive the real estate market.
According to the Housing Affordability Index, affordability is at an all-time high, and many baby-boomers already have solid home equity to rely on.
The spokesperson said in an AOL Real Estate article that “the roadblock is really with first-time buyers… and many of them are being thwarted by credit issues.”
The article cites two major reasons that the baby boomer generation may boost the real estate market: that home equity, and a desire for ease of living factored into their real estate purchases.
A survey done by Met Life Mature Market Institute and National Association of Home Builders showed that 61% of those moving in to a 55+ community cited room layout as a decision-maker, as did 62% of those not moving into such a community, but in non-age-restricted communities. The vast majority of the generation falls in the second category, but the percentages are almost identical.
Room layout and the ease of living asks are not shared as a top priority with younger and first-time buyers.
For more information on how the baby boomer generation may impact the real estate market, read the full article here.