Older Boomers, buyers aged 62 to 70 years, make up 14 percent of all home buyers in 2016. The median age for this group is 66 years old and they were born between 1946 and 1954. Within this group, they have the largest share of single female buyers at 21 percent. Their primary reason for purchasing a home, more than other generations, is for retirement (19 percent), followed by the desire to live closer to friends and family (19 percent).
Combined, Older Boomers own the highest share of investment (11 percent) and vacation (six percent) properties. Equal to the Silent Generation, Older Boomers are the most likely to purchase homes in a small town (24 percent) and in a rural area (11 percent).
Compared to other buyers, they move the greatest distances at a median of 25 miles. Older Boomers are the least likely to purchase homes for the quality of school districts or convenience to schools. Rather, they purchase homes for the quality of the neighborhood and for convenience to friends and family. This age group finds energy efficient appliances and lighting to be very important. Overall, Older Boomers are the most likely to have made no compromises on the home when they purchased (50 percent), cited that they are never moving and this is their forever home (31 percent).
In their home search process, Older Boomers are the most likely to drive by homes and neighborhoods and they are the least likely to find the paperwork a difficult step. Older Boomers are the most satisfied with the home buying process at 91 percent.
Older Boomers’ income is below the median income of all buyers ($88,500) at just $76,800 and they purchase homes at a median price of $225,000. Older Boomers are the most likely to use the proceeds from the sale of a primary residence as the source of their downpayment (56 percent) and from an IRA account (six percent). They are the largest group of home buyers to save for a downpayment for more than two years (35 percent).
Older Boomers are the second largest share of home sellers at 21 percent in 2016. The median age for Older Boomer seller is 66 years. They have the second lowest median income at $86,400. They are the most likely to sell to be closer to friends and family (26 percent) and for retirement (21 percent), in another region of the country (24 percent), and at a median distance of 36 miles from the home they recently purchased. They are also the most likely to sell when they wanted to (95 percent). They receive the highest equity at 36 percent and second highest dollar value at $60,000.
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.