Growing Trend Shows Baby Boomers as Active Consumers

Recently released statistics from Harvard University’s Joint Center for Housing Studies, the National Association of Home Builders (NAHB) and the National Association of Realtors® (NAR), suggest that baby boomers are increasingly active consumers in today’s real estate market. ; According to the Harvard study, baby boomers, or those consumers over the age of 50, represent one of the fastest growing demographics in the U.S. and are expected to make up 20 percent of the population by the year 2030. Baby boomers already comprise the single largest group of homeowners — nearly one-quarter of all homeowners — with 75 percent of those over the age of 50 owning their own home. ; Seniors are also expanding their home ownership beyond their primary residence. Research shows that boomers are looking to second home ownership as a smart investment opportunity. Considering that boomers are starting to think differently about real estate investments as part of their retirement plans, the U.S. Census Bureau predicts second home purchases for boomers to reach 6.4 million units by 2010, up from 5.5 million units purchased in the 1990’s. According to NAR, investment homes accounted for a quarter of all home purchases in 2004, and vacation home purchases