According to Freddie Mac’s newly released “55+ Survey Of Housing Pland & Perceptions Of Those Born Before 1961” (who comes up with these names???) there could be a great migration in the next several years. Seems Baby Boomers and others aged 55 or older, comprising up to several million current home owers, say they plan to move to rental units in the next few years. Holy Smokes!
An estimated 6 million home owners prefer to move again and rent “at some point” according to the survey. More than 5 million of these boomers say they are likely to rent by 2020. “When a population this large expects to move into less expensive rental housing, we have to expect it will create significant new pressure on both the supply and cost of existing affordable rental housing,” said David Brickman, executive vice president of Freddie Mac Multifamily.
Seventy-one percent of nearly 6,000 home owners and renters surveyed say they plan to rent their next home, according to the survey. That’s a pretty incredible number!!
The top factors that they say are “very important” in influencing their next move are: affordability (60 percent); amenities needed for retirement (47 percent); living in a community where they are no longer responsible for caring for the property (44 percent); and being in a walkable community (43 percent).
Respondents also say they don’t want to move far next time they move. Thirty-one percent say they would likely relocate to a different neighborhood in the same city, while 23 percent say they would like to move to a different property in the same neighborhood. Eighteen percent say they would like to move to a different city in the same state and 24 percent would move to a different state.
Nearly six out of 10 of the 55-plus renters surveyed say they prefer to either move closer to their families or in with them. (Don’t tell MY kids that one – or they might move!)
This is a pretty interesting survey given that there are SO few rental units available in Central Oregon. But being a Baby Boomer myself I can understand why people in this age group are electing to get their equity out of their current home while we are in a sellers market. They can then take a breath and decide where they want to live and only be locked-in to that decision for the term of their lease. Back soon…