Boomtown, a blog by Joanna Harrison, has some great advice about a real estate investment opportunity. You see, according to Harrison, “America has an aging population. Currently, the median age is 37.8, (up from 30.0 in 1980, and 28.4 in 1970) and the median age of homebuyers is 44. This demographic shift is happening for a few reasons – decreasing fertility rate, shifting cultural norms, improvements in medicine, the sheer size of the baby boomer generation – and more seniors means more buying power.”
She says this growing market means one thing – OPPORTUNITY! You can capitalize on this niche market and position yourself as an expert for senior homebuyers. Harrison outlines a strategy for becoming the real estate solutions company or go-to agent for seniors.
Consider these statistics from the 2017 NAR study Home Buyer and Seller Generational Trends Report:
Buyers age 52-61: “The Young Baby Boomers”
Makeup: 16% of recent buyers
Higher median household incomes
More likely to have children under the age of 18 in their home
More likely to buy multi-generational homes
Buy for an array of reasons, such as job-relocation, downsizing, and being close to friends and family
Buyers age 62-70: “The Older Baby Boomers”
Makeup: 14% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Typically move the longest distance
Least likely to make compromises on their home purchase
Buyers age 71-91: “The Silent Generation”
Makeup: 8% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Least likely to purchase a detached single-family home
24% purchased in senior-related housing
Tend to purchase the newest homes
More likely than any other age group to find their home by visiting an open house
Seniors are concerned about the following:
- Seniors are often targeted for property theft, so have information on hand about the neighborhood crime rate.
- Are there stairs? Does the neighborhood have a lot of hills?
- Most seniors aren’t concerned with flash or grandiose. Even if they have a hefty budget, they are likely in the process of downsizing. Keep this in mind with the listings that you show, and consider offering educational tools to help with the downsizing process.
- Along with downsizing, most seniors are looking for a reasonable home to spend the last phase of their lives. Affordability is a concern, especially on a restrictive retirement and/or social security budget.
- Is the home in a gated community, or a neighborhood with amenities close by? Seniors don’t want to have to travel far to get to the grocery store, the gym, or their doctor. Be sure to know the distance and accessibility of hospitals, grocery stores, etc.
Be sure to know your market and their needs. Equip yourself with valuable resources that can aid the homebuyer in their process.
Don’t miss an opportunity to capitalize on this niche market and position yourself as the expert!
