Our friends at the Morning Brew recently posted an article Boomers won’t go gentle into that good condo which explores how Mom and Dad are rejecting the expectations of aging.
“According to the National Association of Realtors (NAR), 7% of homebuyers aged 61 to 70 said the main reason they bought their new home was that they wanted more space, up from 4% in 2016. While there are still more downsizers than upsizers among this demographic, thinking bigger is becoming more popular.
Boomers and older Americans:
- Owned 28% of US homes with three or more bedrooms in 2024, according to Redfin.
- Account for 42% of current homebuyers, according to the NAR.
- Hold around $110 trillion in wealth, per the Wall Street Journal.
- The outlet profiled many well-off boomers who want to age in place, prompting them to buy larger homes they can modify to suit their health needs, guests, and even their collections.”
Rather than focus solely on the real estate angle, let’s explore some other implications of this trend: financial, emotional, and medical.
Financially, before Mom and Dad choose to move, it seems reasonable to ensure that they can afford to. Rates are dramatically different than they were a few years ago, do they need a mortgage? What about the property taxes? Is there a 1031 Exchange opportunity? What about more home maintenance while aging? Is there a long-term care plan and policy?
Emotionally, before Mom and Dad choose to move, is this going to enhance their social lives? Is it closer to family and friends? Or is it a new location that promises loads of fun and adventures but Mom and Dad don’t have strong roots there (yet)? Will it help them spend more time with the Next Generation?
And medically, before Mom and Dad choose to move, what are the expectations for how long the new home is home? How many stairs need to be navigated? How close is it to regular medical services? Emergency services? How quickly can family or friends be there, just in case?
Mom and Dad deserve to ride off into the sunset. They are the founders of the feast, and it’s their estate. And we all encourage that, within reason. And as we have these Kitchen Table conversations, we can listen, learn, and help each other live as we want. We can help our families move forward…