Last week, we shared Compass Board Member, Leonard Steinberg’s, perspective on the housing market and the Millennial homebuyer. His perception of the Baby Boomer demographic is just as insightful as he speaks to how their midlife transitions, wealth accumulation, change in housing needs, and more can impact the housing market. 

Here are his thoughts:  

The Baby Boomer demographic is much richer than all others... AND they are anxious to spend their money and enjoy life because their time on earth is more limited... and they may be an even MORE potent household-formation group of a different kind. Many people when they hit their 50's experience a midlife crisis of sorts: the percentage of divorce amongst Baby Boomers is the highest of all demographics probably for this reason alone. And when they get divorced, often it results in THREE transactions related to their homes..... the sale of the marital property and the purchase/rental of a home for each spouse, now separated. 

Here are some stats and thoughts around this group of people: 

• Currently, Baby Boomers are aged between 57 and 75 years old 
• They still hold more than HALF of all U.S. household net worth, at around 52.7%.
• There are over 75 million Boomers...in the US alone.
• Many are empty-nesters, but several marry or re-marry/partner up and start a new family much later in life.
• Many have paid off their mortgages. 
• Many have to take out two mortgages.
• Some have sold their businesses, large, medium, and small. 
• Some start new businesses and careers.
• Most retire, but a growing number remain employed or semi-retired.
• Many have saved and lived frugally and have accumulated wealth for enjoyment in retirement/semi-retirement.
• Many buy or help their kids and grandkids buy homes.
• Many are extremely physically active and obsessed with health and longevity.
• Most are practical and seek homes that deliver safety and security.
• Most prefer staying close to friends and family, even if it costs more (and they can afford it).
• Many become much more engaged culturally and often gravitate towards cities.
• Some wish to escape more urban settings.
• Most see their aging as the BEGINNINGS of the 'next chapter'....not the end of life. 

ALL of these 70 million-plus people will be extremely well served by professional advisors to help them evaluate and navigate all their options. Today, more than ever, we as professional advisors need to fully understand and familiarize ourselves with the multitude of diverse lifestyles and options for our clients. Now THAT'S a truly divine target market if I ever knew one! 

Our entire team finds fulfillment in helping our clients with their real estate needs no matter what stage of life they are in or what stage of life the other party is in. Understanding people is a large part of what we do and it matters to your end results.

Dana Green