Trendsettting Baby Boomers Ready for 'Me Time' in Homes

For this generation, having a nice place to live is more important or equal to spending time with grandchildren, a new study reveals. These home buyers shun retirement communities and desire spacious dream houses with upscale amenities.
By: Amy Hoak: The Wall Street Journal Online
Every eight seconds, another baby boomer turns 60. And as the trendsetters of the generation head for retirement, they're yearning for their dream homes.

But their idea of housing utopia doesn't necessarily hinge on spending quality time with the grandkids, according to a study commissioned by publisher Hanley Wood and released this week at the company's American Housing Conference in Chicago.

More than a third said their adult children and their own parents are not a consideration in creating their dream homes. Sixty-three percent said enjoying their home after age 60 is a priority above or equal to spending time with the grandchildren, and just 35% said they'd relocate to be closer to family and loved ones.

"The generation has always been considered selfish," said Frank Anton, chief executive officer of Hanley Wood, a media and information company for the housing and construction industry. "This survey would indicate maybe they're more selfish than anyone knows."

The longing for "me" time is a theme that often appears in their real estate preferences, as identified by the Hanley Wood study. Many have a list of dream amenities: Homes that are cozy and comfortable, yet airy and spacious; homes without stairs, but with room for a Stairmaster; living spaces that are energy efficient, but deluxe. They don't want single-age communities, instead looking for opportunities to stay active.

"They're saying 'Look, I did my thing. I raised my kids, I was nice to them, I put them through college, I went to their soccer games. Now I want to do my own thing,'" Anton said.

Respondents interviewed in the study weren't just any boomers. The study included 2,000 homeowners between the ages of 50 and 60 - and with annual household incomes of $100,000 or more. The study's authors termed these individuals "Boomfluentials," the oldest, most educated and most affluent members of the generation.

This subgroup often sets the trends that the housing industry will follow, Anton said.

Unlike the boomers' parents, many of whom remained in the same homes before and during retirement, only about one in five respondents who participated in the study said they would prefer to stay in their current home as it stands today.

Thirty-five percent said they would prefer to buy a different or new home to get what they want, while 17% were ready to design or build a new home to meet their needs and desires. Fifteen percent were cost-conscious remodelers who plan on upgrading their current home; 12% said they planned to purchase a second home.

Downsize, not downscale

Although about half of those surveyed said they'd move to downsize from a larger, child-centered home with a huge lawn, they're not exactly willing to downgrade. One in three boomers surveyed believe they have more house than they want or need in the future. But they also want to furnish that smaller space with quality amenities.

"This generation wants upscale living with less complication. They want their homes to be manageable, temperate, affordable, flexible and accessible," Tom Flynn, president of Hanley Wood Market Intelligence, said in a news release.

The study also found that these "leading edge" boomers don't seem to be moving en masse toward urban areas, as some have perceived. Of those surveyed, 67% said they would rather live in the suburbs and 14% said they would rather live in a rural area.

Fifty-one percent of those surveyed are planning to move to a "better" climate, 46% percent said they are planning to move where the cost of living is lower and 38% plan to move or remodel to ensure they could live comfortably on one floor.

For the occasions that their grandchildren do visit, 58% said they want their house to be fun for kids, and 52% are interested in design features that make the home safe for children.

Why boomers matter

Hanley Wood commissioned the study because boomers have such an influence on overall housing trends, Anton said.

"Baby boomers have determined the course of the housing market for the last 30, 35 years," he said.

"In the '70s, they were kids coming out of college. They weren't ready to buy a house, they rented apartments. There was this huge building boom in the rental apartment market.

"In the late '70s and early '80s, they started to turn 30 and get married. They bought their first house, so you had a big wave of builders building relatively small, relatively inexpensive homes."

During the 1980s through about 2000, this population segment became older and more affluent, and started to buy bigger houses, termed by many as "McMansions." The trend of remodeling and buying second residences has reigned for the past 10 years, he said.

The survey was an effort to determine what boomers will do next - especially as housing markets cool and builders need to consider what models will be sellers that stand out among the increasing inventory, Anton said.

"If you're a participant in the housing industry, you ignore baby boomers at your own peril because they are your primary market still."