Today's affluent baby boomers are not slowing down, and the majority remain "on the move," with plans to move from their current home within a few years, according to the latest Coldwell Banker Baby Boomer Real Estate Survey, as reported by the Building Owners & Managers Association.
| HOME RENOVATION INTEREST |
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The survey, an online random sampling of 363 certified Coldwell Banker Previews International sales associates who market luxury homes, found that affluent baby boomer homeowners (ages 40 to 58) remain an upwardly mobile group. In fact, more than half of the baby boomers (52 percent) who purchased a luxury home through Coldwell Banker within the last two years told their sales associate they plan to spend fewer than five years in their current home.
Eighty-six percent of these home buyers said they have purchased three or more homes throughout their lifetimes. Almost half said they have lived at their most recent residence for a period of only one to five years.
| WHERE THE BOOMERS ARE |
In the opinion of the sales associates surveyed, boomers want to live in the suburbs: Suburbs 67% Source: Coldwell Banker |
The Coldwell Banker sales associates indicated that 65 percent of their baby boomer clients made their most recent home purchases because they wanted bigger residences. A mere 17 percent were looking to scale down, while another 15 percent were buying a second or vacation home.
The typical size of a recent luxury home purchased, according to the survey, was 4,500 square feet or less with four bedrooms, three bathrooms and a backyard. The overwhelming majority (88 percent) of these luxury homes cost approximately $1 million, while only 12 percent of the sales associates reported recent sales of homes costing more than $2 million.
| NEARBY BOOMER HOBBIES |
Coldwell Banker sales associates said baby boomer clients told them they wanted their homes to be located where they can continue to pursue favorite pastimes: Source: Coldwell Banker |
The survey also indicated that 60 percent of these buyers purchased existing single-family homes, while 21 percent opted for new construction and 16 percent purchased condos/townhouses.
"Our survey clearly shows that wealthy Baby boomers want to enjoy the rewards of their hard work," said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corp. "They want bigger and more luxurious homes and want to remain active. They are in their peak earning years, have benefited from many years of strong stock market returns and have built tremendous equity and appreciation in their homes. These factors, along with many receiving inheritances from their parents, are allowing the luxury-home market to thrive, and it should be robust for years to come."
The study was commissioned by Coldwell Banker Previews International and conducted by Zoomerang Research in January 2005. Coldwell Banker defines a luxury home as having a listing price of at least $500,000, priced within the top 10 percent of its market and of exceptional style and quality.