Not only do the majority of Baby Boomers prefer to age in place, but they also feel their homes are places they can stay as they get older (75%).
This sentiment exists despite the fact that many of these homes lack aging-friendly features such as a single story, 58%; low maintenance, 47%; and accessibility features, 27%, according to the latest research from The Demand Institute. Three quarters of boomer households have already suffered a major health incident or have a chronic health condition.
The Demand Institute surveyed more than 4,000 Baby Boomer households about their current living situation, moving intentions and house preferences for the report.
Of the 63% of boomers who prefer to age in place, 62% report living in the same home for 10 or more years and 85% say they’re staying in their current home by choice, rather than financial or other circumstances.
While most boomers plan to age in place, 37% have plans to move from their current home, data show. And 47% of those looking to move are looking for nicer homes and more space. In fact, boomers will spend $1.9 trillion on new home purchases and $500 billion on rent in the next five years.
Many boomers have had to adapt their retirement and housing plans to new financial realities after the financial crisis and housing crash, but they will still account for nearly $1 out of every $4 spent on home purchases and rent in the next five years.
And when it comes to retirement, boomers are still retiring or planning to retire when they reach their mid-60s — ready or not. Fewer than half of boomer households are retired today, but a majority will be retired five years from now, data show.
“With median assets of $240,000 — more than half of which is tied up in their homes — many Boomers still have a ways to go [before they are ready for retirement,” The Demand Institute says.
Access the report here.
Written by Cassandra Dowell