In case your head is not already spinning from all the possible buyer demographics to keep tabs on, let us introduce you to another segment, the Older Boomers. This isn’t their first time around the homebuying block, and though they have a more limited income thanks to retirement, they’re the least likely to compromise in their home search. Because Older Boomers make up 15 percent of all homebuyers, builders should keep an eye on what this demographic wants and why they’re moving. Here’s a hint: They’re not moving for school districts.
Using data from the 2020 Home Buyer and Seller Generational Trends report, Older Boomers, buyers aged 65 to 73 years, made up 15% of all homebuyers in 2019. The median age for this group was 68 years old and they were born between 1946 and 1954. Within this group, they had the third-largest share of single female buyers at 22%. Their primary reasons for purchasing a home were the desire to live closer to friends and family (22%) and retirement (14%).
Older Boomers most often purchased homes in the suburbs (51%) or in a small town (23%). They were also the most likely age group to purchase new construction (82%), for the ability to customize design features and to avoid renovations. Compared to other buyers, they moved the greatest distance at a median of 40 miles from their previous home. Older Boomers were less likely to purchase homes for the quality of school districts or convenience to schools. Rather, they purchased homes for the quality of the neighborhood (60%) and for convenience to friends and family (48%). Buyers aged 65 to 73 were the second most likely to not make compromises in their home search (42%).
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