Encompassing a span of nearly 20 years, it should come as no surprise that there are differences as well as similarities in Baby Boomers on each end of the age spectrum. One thing that both groups have in common is that while finances are certainly a factor, lifestyle factors tend to play a bigger role.
Upgrading vs Downsizing
Younger Baby Boomers are more likely to trade up for more living space than older Boomers. With more young adults more often coming back to live with their parents after graduating from college it makes sense they would want more room… after all, adults take up more space than children even with the same number of people. Add to that parents who may also move in, even if only for a time, and it could be time for an upgrade. Low interest rates coupled with lower housing prices can make it possible.
On the other hand, older Baby Boomers are more likely to be seriously downsizing… often moving down to about half size or less. They are also more likely to be looking for living space with at least one bedroom on the main level.
Houses vs Condos or Townhomes
While younger Boomers overwhelmingly prefer a single family house, condos and townhouses are more popular with older Boomers, whose mantra is often 'simplify'. Condos and townhomes also give freedom from outside maintenance, along with more freedom to travel. In our part of the country 'snow birds' often migrate to warmer climates in the winter months.
Younger Boomers are more likely to be interested in securing second homes than older Boomers. The additional real estate could be for vacation homes, investment properties… or planning ahead and buying a property now when prices and interest rates are low for future retirement.
Older Boomers may already have second homes… in Minnesota, often at a lake for idyllic summers and/or in the southwest or southeast for milder winters. If they have two homes, they may be considering selling one of them and renting or staying with family and friends in other parts of the country (or world) for part of the year.