Baby Boomers Impact on the Real Estate Market
According to the United States Census 2000, 78+ million baby boomers were born from 1946 to 1964. Beginning in January 2011, baby boomers started reaching the age of 65 at a rate of 10,000 a day, and this rate is expected to increase to the year 2030. In Hawaii, census results indicate that our senior population is increasing three times faster than the total population.
A wave of retirement among the baby boomers in the coming decades will have a tremendous impact on the residential real estate market. As baby boomers have reshaped every stage of life, it is no doubt that their views and expectations will reinvent the way retirement is lived. Baby boomers are working longer and prefer to remain active. They aren’t ready to retire. Instead boomers are opting to gradually phase-in retirement.
According to Kay Mukaigawa, Principal Broker and President of Primary Properties, there is a growing trend of boomers trading in their large single family homes to downsize to an urban community where they can live, work, and play. Developers of new Kakaako, Ward Village, and Ala Moana projects envision condominium high-rises within a robust community of café’s, parks, gyms, innovative stores, and sites for music, dance, and art.
Shari Motooka-Higa (NMLS 377721) is an Instructor for the National Association of Realtors Seniors Real Estate Specialists (SRES) Designation Continuing Education credit courses. She has been tracking the home sales statistics for several years. According to Motooka-Higa, Oahu home sales by owners 65 and over have been gradually increasing over the past few years. In 2014, more than 50% of owner-occupant home sales were by owners age 65 and over in Kapahulu, Pearl City, Manoa, Aina Haina, Kalihi, Waialae, Kahala and Palolo. In Kaimuki, more than 70% of the home sales were by owners age 65 and over. On Oahu there were a total of 1,315 home sales recorded for owners age 65 and over. Relative to the Census data, single family home sales will continue to increase each year as boomers opt to downsize to condo-living.
Baby boomers refuse to be labeled as “seniors” and view themselves as forever youthful. This is not the generation that will sit in a rocking chair and live in quiet retirement. Baby boomers are changing the perception of the golden years while at the same time impacting the real estate market.
Join Kay Mukaigawa and Shari Motooka-Higa for an informative free seminar that will provide an update on the real estate market and senior living options.