Orlando Convention Discusses Effects of Retiring Baby Boomers

Among the topics discussed last week at the National Association of Home Builders convention in Orlando was the growing demand of baby boomers wishing to move on to their next phase of life. Often, this includes purchasing new, unique homes/property.

All over America, baby boomers are parking the minivan, junking the lawn mower and racking up unprecedented sales in resort-style subdivisions, luxury condominiums and mountain or beach vacation retreats. There are approximately 76 million potential buyers within this generation, all with money to spare through inheritance, equity and career earnings.

Market analyst Tim Sullivan of San Diego charts boomer trends for developers. Sullivan said baby boomers’ buying habits are more difficult to pigeonhole than other demographic groups.

“They’re buying everything and they’re buying it everywhere,” Sullivan said. “This buyer has now transcended the traditional buyer profile.”

Of more than 1 million U.S. home sales anticipated in 2006, Sullivan estimated more than 300,000 will be to baby boomers.

Back in Atlanta, David Tufts, president of Coldwell Banker’s The Condo Store, is working with scores of downsizing boomers. They may be shrinking their space, Tufts said, but they are not lowering their standards.

“My parents were not spenders. They were savers,” Tufts said. “The inherited wealth that’s coming is huge because of the savings of the generation before, and these baby boomers will spend it.”

As the first wave of baby boomers is beginning to retire, they are looking to purchase homes that include easy access to tennis courts, golf courses and other leisure activities. This, of course, is a major reason why Florida home sales are rarely low. The location and weather of the region are constantly appealing.

Some boomers are dividing their resources between a chic smaller primary residence and a vacation home. Builders and developers have come to refer to these homeowners as “splitters.”

Others, meanwhile, are looking for a package deal. These home buyers are scouting the housing market not only for homes built to accommodate them as they age, but communities packaged with a wide-ranging buffet of built-in recreational activities and home maintenance services.

Casey Hill, president of the Georgia division of Pulte Homes‘ Del Webb brand, which specializes in housing for adults over 50, said marketing to the aging boomers entails a far different set of amenities than earlier senior markets.

“They’re no longer playing shuffleboard,” Hill said. “They’re skydiving.”

Del Webb is one of the nation’s two largest and most experienced builders of so-called active adult communities. Its Village at Deaton Creek broke ground in Hall County near Gainesville last fall.

As this generation of buyers looks for a Florida home loan, it can rest assured that the market remains strong. Don’t expect this to change any time in the near future, as numerous experts predict a healthy Florida real estate bubble.