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The real estate market is undergoing a dramatic transformation, one that is reshaping the way we plan for retirement.
Recent statistics from the National Association of REALTORS® (NAR) Home Buyers and Sellers Generational Trends Report reveal that nearly 28% of Baby Boomers are planning to downsize within the next five years, while 62% of combined Gen X and Boomer homeowners emphasize the importance of flexible housing options in their long-term retirement strategy.
For decades, Baby Boomers have cherished large, family-centered homes. However, as they approach retirement, many are shifting their focus to downsizing and embracing community-centric living. Gen Xers, already laying the groundwork for their future retirement, are taking note of these transformative trends. Instead of adhering to outdated notions of homeownership, both generations are opting for properties that offer reduced maintenance, enhanced accessibility, and the promise of a more fulfilling lifestyle.
Jessica Lautz of NAR captures this transformation succinctly: "We are witnessing a fundamental shift in how retirees view their homes—not as static assets but as dynamic components of their overall retirement strategy."
The NAR Research also shows that:
- Fifty-eight percent of Gen X home buyers are married couples, providing them with dual incomes.
- Generation X buyers were the most likely to purchase a multi-generational home at 19% and also were most likely to purchase a home for a job relocation or move.
- Baby Boomers purchased for an array of reasons: primarily, the desire to be closer to friends and family due to retirement, and the desire for a smaller home.
- Younger and older boomers were likelier than others to purchase in a small town, and younger boomers were the most likely to purchase in rural areas.