Retirees move real estate to California…..
At about the age of 65, most Californians stop working full time and begin capitalizing on the benefits of social security, Medicare and their years of saving. The decision to retire is often swiftly followed by a series of lifestyle changes as retirees take advantage of their newly-increased liberty and accumulated financial power.
One of the most significant changes is the sale of the retiree’s current home and the corresponding move to a new, more compact and centralized residence with a better year-round climate or in closer proximity to family. As California’s population continues to age, senior citizens will exert increasing influence over both the housing market and every other aspect of the California economy.
Citizens aged 65-75 are more likely to own property than any other age group, as displayed on the first of the above charts. The accumulated equity in their homes, combined with their savings from a lifetime’s employment allows them to exert a disproportionately strong influence upon the statewide housing market. When these citizens begin to change their spending and living habits in retirement, they create new opportunities for multiple listing service (MLS) brokers and agents who market single family residences (SFRs).
The number of people in California aged 65 and older is displayed on the second of the above charts. This rapidly growing segment of the population is traditionally made up of the retired and soon-to-be retired.
Over the past twenty years, retirees have exerted minimal influence in real estate transactions, as the age group of citizens over 65 was comparatively small. The generations born between 1915 and 1935 – during the Great Depression and World War II – did not have the numbers necessary to remold the housing market in their own image. That is about to change dramatically, as the above population chart demonstrates.
The massive Baby Boomer generation is defined by the U.S. Census Bureau as the generation born between 1946 and 1964. As they begin to retire en masse (a process which has already started) every aspect of the state’s economy will change. The Boomers, the largest single age group in California, have spent the last 30 years accumulating their wealth (primarily in the form of stock – not cash) and generally living in large, suburban SFRs.
So, if you are downsizing or looking for that perfect retirement community – let us talk! Thanks Billy Wynn