I read recently that 30 percent of Minnesota's doctors are predicted to retire in the next decade… just when we are likely to need more doctors than ever as Baby Boomers create the largest group of retirees this country has ever seen. This could create a health care crisis.
Researcher Arthur C. Nelson predicts another potential crisis for the retiring Baby Boomer population… a housing crisis he calls the "Great Senior Sell-Off".
The housing boom in the 1990's and early 2000's was largely driven by Baby Boomers in their peak family and income years. According to Nelson, 77 percent of new housing construction during that time was driven by this demand.
He predicts we could have another housing crisis in about another decade as downsizers become ready to sell off their large suburban homes and there isn't a ready supply of buyers for them. Although many households with children still will likely want such homes, there is a shift towards smaller, more energy efficient homes in more urban settings.
I know I see this all the time. Many families want more sustainable living, living closer to where they work and supporting local neighborhood eateries and businesses.
Add to this the shift we are seeing in demographics and we could have a compounded problem. Nelson fears that we are not doing a good job of educating minorities (who are becoming the new majority) to make the kinds of incomes required to buy the homes we've already built. He predicts this will create a crisis in the 2020s and 2030s for seniors who simply cannot sell their large homes.
Unlike our recent housing crisis, he predicts this one will peimarily affect America's aging grandparents and will mean many people will be 'aging in place' simply because they can't sell their homes.
Hmmm… sounds like it could be good to downsize sooner rather than later. I work with many Baby Boomers planning ahead and doing just that!
Sharlene Hensrud, RE/MAX Results – Email– Baby Boomer Realtor
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