“Baby Boomer” is an umbrella term used to describe the generation born between 1946 and 1964, chiefly because there was a baby boom then, especially right after WWII. The oldest of the Baby Boomers are approaching 70, and the youngest are just passing the 50-year mark. And despite their age, they are active – doing everything from sports participation to community involvement to playing with grandkids. In addition, many are still working, either by choice or by necessity. When it comes to home buying, Baby Boomers have the spending power, being expected to spend over $1.9 trillion over the next five years, and they have fairly definite characteristics and pretty specific needs and wants. That’s why put together this home buying guide for Baby Boomers in Princeton.
Home Buying Characteristics of Baby Boomers
As a whole, Baby Boomers make up 31% of the home buying population, but they have far fewer first-time buyers than Millennials. In addition, they are typically not purchasing large family homes to house children younger than 18. This brings us to the first important point we want to make in our home buying guide for Baby Boomers in Princeton. And that is that Baby Boomers are not perceived by sellers (and some agents) as important as, say, Millennials as a target market for home selling.
(Be aware, though, that a good agent will understand the importance of Baby Boomers as a segment of the buying market. To learn more, call (609) 436-5221.)
Baby Boomers have purchasing power, though, with younger members having about the same median income as Millennials, around $96,000. Also, these younger Baby Boomers purchased more multi-generational homes than any other group, 21% in 2014.
Overall, Baby Baby Boomers typically purchase detached single-family homes over any other type of home. Among younger Boomers, 81% purchased a single-family home, and 72% of older Boomers did. The most noticeable trend among Baby Boomers is that they are selling their larger homes in order to downsize and are often relocating to small towns or suburbs. For older Boomers, this downsizing is often for the purpose of having a retirement home and/or to be closer to family and friends.
Now, these are, of course, just some general characteristics and trends for Baby Boomers. But we’ve kicked off our home buying guide for Baby Boomers in Princeton with these to help you get a better handle on exactly where you are as a Boomer and to help you understand your home purchasing needs.
Home Buying Guide – Concerns for Baby Boomers
The top reasons for buying a new home among older Baby Boomers are:
- To enjoy the amenities of a newly constructed home
- To be part of a new construction community
- To avoid having to deal with renovations or plumbing and electrical issues.
The top concerns and influencing factors include:
- Quality of the neighborhood
- Convenient proximity to family and friends
- Nearby and easily accessible shopping and health facilities
While the neighborhood is an important factor for younger Baby Boomers, they are often more concerned about being conveniently located with respect to jobs, shopping, and schools.
Typically, Boomers purchase homes in the $200,000 to $300,000 range, 25% of them buying homes built between 1960 and 1986 and with 1,500 to 2,500 square feet. In addition, Baby Boomers are highly concerned about heating and cooling costs, as well as the cost of commuting. They also are unwilling to compromise on the home they purchase, holding out for exactly what they want and need. This is especially true for older Boomers, who see themselves staying in the home for the rest of their lives.
Baby Boomer Home Buying Guide – The Shopping
When it comes to house shopping and the actual transaction, Baby Boomers are twice as likely as Millennials to use an agent. And while 43% of all home buyers search online, older Boomers still drive around neighborhoods to do their looking. As you would expect, they are 50% less likely than Millennials to do any home searching or shopping on a mobile device, but are more likely to use online video sites and print ads.
We include this in our home buying guide for Baby Boomers in Princeton primarily to help you find the right agent. For you want to seek out an agent who has a solid understanding of your search and shopping preferences.
Just the Beginning
Finally, keep in mind that this home buying guide for Baby Boomers in Princeton is just a starting point really. That’s why it is so critical to have a qualified local real estate agent on your team. Our agents understand your needs and are ready to help you find that home you want.