Move over millennials. This is the message received from the latest demographic survey conducted by the National Association of REALTORS® (NAR). For the first time in eight years, baby boomers once again make up the largest share of home buyers and sellers. This is quite a significant shift considering the percentage of the population that millennials comprise.
Why the shift?
The report attributes the shift to a number of factors, including the fact that baby boomers are now at an age where they are more likely to be looking to downsize or move to a new location. Additionally, the report notes that baby boomers are more likely to have the financial resources to buy a home, as they are more likely to be retired and have paid off their mortgages. At the same time, baby boomers are much more likely to already be homeowners and therefore have benefited greatly as home prices have skyrocketed over the last several years.
As for the substantial shift in numbers, they were as follows:
|Millennial buyers (%)||43%||28%|
|Millennial sellers (%)||26%||18%|
|Baby boomer buyers (%)||29%||39%|
|Baby boomer sellers (%)||42%||52%|
The report’s findings are likely to have a significant impact on the housing market. As baby boomers continue to downsize or move to new locations, they will be selling their homes, which will increase the inventory of homes for sale. This could help to cool down the housing market, which has been in a state of high demand and low inventory for the past few years.
In addition, these findings are also likely to have an impact on the types of homes that are being built. As baby boomers downsize, they are more likely to be looking for smaller homes, which could lead to a decrease in the number of large homes being built. Additionally, as baby boomers move to new locations, they are more likely to be looking for homes in warmer climates, which could lead to an increase in the number of homes being built in those areas.
South Florida will continue being a highly desired warm weather market for not just baby boomers, but for all buyers. Are you thinking about buying or selling a home in South Florida? Contact Natasha at Live South Florida Realty, Inc.! Also, be sure to download the free Florida Home Search app for your mobile device.