A lot of real estate money is about to change hands as boomers go through the transition from working full-time to working part-time, traveling more, and generally rewriting the game plan for where they want to be and how long they want to be there. Housing choices will reflect this transition. As mentioned previously, some will need to take care of aging relatives just as their own children are setting off on their life journey. Having an elderly parent move in may not be a satisfactory solution. An in-law apartment or guest cottage may be a better bet. Homes may need to be retrofitted, or new houses designed with wider doorways, no door jams, single-floor living, and lever handles to accommodate older residents' needs.
In some instances the McMansion on the cul-de-sac will be sold as soon as possible to get out from under onerous real estate taxes. It may have been worth carrying the load so that the kids got the benefit of a top-notch public school system, but once those days are over it may make better economic sense to cash out the big house and split the dollars into purchasing two condos — one in the city and one at the beach.
Getting rid of the big house does not necessarily mean spending less on the new smaller place. Downtown condos in most major cities can be very pricey, especially in areas that are safer and offer the most services nearby. Condo fees may wind up offsetting lawn care and property upkeep costs for the suburban house.
Second Homes
Quite a few boomers are investing in second homes even before retirement. The National Association of Realtors reported that in 2005, 12.2 percent of homes sold across the nation were second homes bought as vacation property. Another 27.7 percent of sales were for second homes that were purchased as investment properties.
New Homes
New homes are being built with a nod toward values those nearing retirement hold dear. For one thing, they do not want to place themselves in a “retirement” community that in any way conveys being old and decrepit. The Del Webb model of active life communities still captures the imagination for some retirees, but it is not universally appealing. Nostalgia is playing a role in the dreams of how boomers see their lives turning. Trying to recapture the carefree days of running loose in the neighborhood knowing any house was welcoming is driving the design of some newer housing initiatives. Placing houses closer to each other and the street, adding front porches and sidewalks, all contribute to establishing the close community feel that people are seeking.
Sunshine States
Florida, Arizona, New Mexico, and California have long held the allure of easy living in warm, sunny climates. Big developments of homes with shared resources such as a club house, golf course, fitness center, and hiking trails have been the hallmark of how to live the life of leisure envisioned by Del Webb in the 1960s. The appetite for easier living geared toward a population finished with full-time work remains. Not everyone wants to move halfway across the country to find this type of lifestyle, however.
Pulte Homes, one of the nation's largest home builders, is betting that the model will work in other parts of the country as well. Brownstone Township, Michigan is one of the early sites for an active community with 620 homes. The company has plans to build another 100 such communities throughout twenty-four states by 2008. This developer is betting that, for many, the desire to remain near family and friends will outweigh the attraction of full-time fun in the sun.
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