Baby Boomers and Millennials to Ramp Up the Real Estate Market
The spring housing season has started early this year, due to an increasingly strong demand for homes. With a soaring stock market, very low interest rates, and an improving economy, it’s no surprise that homebuyer demand was up 23 percent in January compared to January 2016, with an 18 percent increase in buyers making offers.
According to market analysts, the boom in the housing market this year will likely be driven by two groups at opposite ends of age demographics: Millennials and Boomers.
Two Growing Demographics
Millennials, or those born between 1980 and 1995, are getting into the market largely as first-time buyers. On the other hand, Baby Boomers are those born after World War II between the years 1946 and 1964, people who are between 53 and 71 years old in 2017. This group includes “empty-nesters” interested in downsizing now that their kids are grown.
Millennials and Boomers make up the two largest American generations in U.S. history. They’re expected to play a key role in moving the housing market this year. The top trend among Millennials is that they’re reaching the age where they’re getting married and planning to have children. They need homes suited for their growing families.
Boomers, meanwhile, are reaching retirement and often want a smaller home with less maintenance needs. Many of them want to downsize and move into a community where the landscaping, lawn care and grounds keeping is done for them. Both of these demographic waves will be impacting the housing market this year.
A lot of Millennials are attracted to urban areas. They want to be close to not only their jobs, but also to urban centers that offer an exciting nightlife, restaurants, museums, and sport venues. This has contributed to a population boom in the city of Jacksonville, where many Millennials are moving to be close to Florida’s world-famous shoreline, while also enjoying all the amenities in the city.
Realtor.com has projected that in 2017, the top 10 housing markets based on price and sales gains will include Jacksonville at No. 6 and Orlando-Kissimmee at No. 7.
Not all Boomers want to downsize. More than 30 percent of younger Boomers are looking for more living space. Both downsizers and upgraders are drawn to Active Adult communities like Solivita in Kissimmee, where they are finding beautiful new homes in a community where they do not have to worry about maintenance.
These communities also have the added benefit of activities on the premises. Solivita offers indoor and outdoor dining venues, state-of-the-art spa and fitness complexes, pickleball and tennis courts, and other facilities for sports and games. There are also two championship golf courses, and plenty of green space for walking and cycling. No matter where your interests lie, there is something for everyone at Solivita.
Conclusion: In a very strong housing market, the special needs and interests of Millennials and Baby Boomers will help keep real state strong in 2017. For Millennials, a desire for urban living could become a key factor, and for Boomers, it’s the appeal of Active Adult communities.