As soldiers returned home from war following World War II, they started to purchase houses, cars, marry, and have children. This, in turn, generated a massive boom in the birthrate. Before the Second World War the United States (and much of the world) had lingered in the Great Depression. So, for the first time in decades, Americans not only were free of a massive war but they were in the middle of a powerful and growing economy. With improved jobs and more money to spend individuals were having more children than ever before, which led to the Baby Boom.
Baby Boomers were born between 1946 and 1964 (essentially the end of WWII and the start of the Vietnam War). This means the majority of Baby Boomers are now in their retirement years. With a large percentage of individuals now in retirement it has led to a massive shift in real estate buying. Known as a ‘Silver Tsunami’, the travel of these retired individuals will have a major impact on the real estate market in 2020 and the immediate years to follow. Here is what you need to know about Baby Boomers and real estate.
Weather Isn’t The Only Factor
There is the assumption that Baby Boomers only move to locations where the weather is warm. While this is partially true it is not the only factor current retirees consider when looking for a new destination.
Baby Boomers want a location that offers financial savings, such as no property taxes or no state sales tax (think both Florida and Texas). They also want locations where there is an excellent public transportation system. Cities struggling with this will miss out on a large portion of Baby Boomer dollars, so having a built-in and well oiled public transportation machine will be helpful. Plus, access to activities and food is a huge plus.
Where Are Baby Boomers Moving
So where exactly are Baby Boomers moving to? According to SmartAsset, Florida still is by and large the most popular choice. In fact, the state saw a net migration of nearly 60,000 retired individuals from out of state. This is nearly four times the next most popular state, which is Arizona. While Arizona has both a property tax and a state sales tax, the cost of living is relatively inexpensive when compared to other states. Plus, the weather is warm throughout the year and there are plenty of affordable activities. It’s also excellent for driving (outside of monsoon season) and it is within close proximity to a number of national parks.
Other states that make up the top destinations for Baby Boomers include South Carolina, Georgia, North Carolina, and Texas. There are two states in the top 10 that might surprise you: Oregon and Delaware. These cold-weather states prove it isn’t always the warm and sunny weather that draws Baby Boomers. Some do still enjoy the change of seasons and the colder winter months. The biggest reason why individuals are moving to Delaware is that the city has no sales tax and some of the lowest taxes on real estate anywhere in the country.
Oregon is a bit different though as it does have a high personal income tax (although no sales tax). The biggest flux of Baby Boomers moving to Oregon hail from California as retired residents look to remain on the West Coast but move away from the high cost of living associated with California.
There are specific cities that are proving especially promising for Baby Boomers and the influx of residents will affect real estate not only in 2020 but in the next several years. While Florida is a prime location, retirees don’t necessarily pick one specific city over others, so the ‘Silver Tsunami’ is a bit more spread out.
The same is not true in other regions. Mesa, Arizona, which is a suburb of Phoenix, has seen the largest net migration of over 2,500 residents per year. With solid transportation options including a light-rail that travels into Phoenix, Tempe, and other local communities, it is proving to be a popular destination. Phoenix, itself ranks fourth, Chandler (another Phoenix suburb) ranks sixth, and Scottsdale ranks ninth. This makes metro Phoenix a prime destination for you as a real estate agent.
Other cities in the top 10 include Cape Coral, Jacksonville, and Port St. Lucie in Florida, Henderson, Nevada (just outside of Las Vegas), Charlotte, North Carolina, and Austin, Texas.
Get A Leg Up On The Silver Tsunami
If you are a real estate agent in warmer weather climates, be prepared to see a continued migration of Baby Boomers to your part of the country. Baby Boomers and real estate will play a major role in the next few years. While this migration will not last forever you should expect to see this trend continue at least for the immediate future.
This means you need to take advantage of the incoming residents. Now, many of these newcomers will not have direct referrals to real estate agents. They may have visited the region in the past, but as they are moving (either permanently or as snowbirds to avoid the winter weather up North) several states away they will not have the same kind of connections. This means it is especially important for you to prime yourself for these connections. And to do so before they arrive and start looking for homes and condos.
The very best way to do this is through RealProcity. RealProcity is an online network that connects you to potential referrals who are moving in your area. These are individuals you would generally not have contact with. All of this is available to you with no money down and no payments ever until you close a deal using RealProcity. So if you’re ready to take advantage of the Baby Boomers moving into your neck of the woods now is the time to sign up for RealProcity.