The largest source for listings in the 2020’s will depend on full service Realtors rather than technology to guide them through their next transition. The career Realtor who specializes and caters to this group will have an abundance of listings and a continuous inventory pipeline. I am referring to the Baby Boomer generation which is at or coming into retirement at a rate never seen before.
Rich Rudnick and Don Cunningham pick up from the previous podcast where they addressed how technology and discount brokers are changing the landscape of the Real Estate Industry. Predictions of elimination of the full service Realtor were discussed and ended with what the “experts” who are predicting the end are missing: the next decade’s largest demographic. Baby Boomers (1946-64) and the Silent Generation (1925-45) have the highest percentage of home ownership than any generation following them. They also have special needs and circumstances that will almost always necessitate a move and Rich and Don will discuss the impact, challenge and opportunities that are ahead.
Here is what will be covered:
- The statistics, facts and data (see complete information below)
- How to best prepare and become an expert, specialist
- The two groups, their needs and how to best serve them
- Comparing survey results vs. reality
- Why full service Realtors will trump technology
- Other trends and long term effects on the market
Sources for: Information, Data, Statistics
https://www.youtube.com/watch?v=lvjafDYlRQA Age Wave Video https://www.youtube.com/watch?v=q2TVwN9yp7E&feature=youtu.be Epcon Builder Testimonial
- Medicare and Social Security are expected to be insolvent within the next 10 years due to the number of people on the system vs. the number paying into it. This has been the case for years but will really kick in as the masses head for the exit.
- Currently there are over 5 million Alzheimer’s patients. In 30 years, the number will be 15 million plus. Current costs to care are over $277 billion.
- Peak spending age is 46 and the largest generation is saving and downsizing, hoping to have enough for retirement.
- The need for Strategic Partnerships of: Realtors; HECM; CPA; Wealth Management; Estate Planners and Senior Support Groups is greater than ever.
52% of Baby boomers (1946-64) are opting out of downsizing (for now) due to:
- Being healthier and living longer
- Having to work longer to recover losses from the last recession
- Knowing Social Security/Medicare most likely will not be available for them
53% of young Boomers (1955-64) have credit card debt and delayed saving for down payment.
47% of old Boomers (1946-54) will buy (downsize) due to retirement.
29 % of Silent Generation (1925-45) will buy Senior-Assisted living Housing.
42% of older millennial’s (1980-89) have student loan debt.
Annual Growth Rate in Labor Force by Age:
75 and older: + 6.4%
remaining age groups: -1.5 to +1%
Generation/birth years # Births Home Ownership By %
Greatest: 1924 – earlier
Silent: 1925-45 47 Million 79%
Baby Boom: 1946-64 75 Million 76%
Generation X: 1965-80 56 Million 60%
Millennial: 1981-97 62 Million 37%
Millennial’s expected to overtake Baby Boomers in 2019 due to immigration
The generational gaps are wide and polarized:
Home ownership by percent of age group: