A Second Home and Real Estate - Baby Boomers Boost Second Home Market
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Baby Boomers Boost Second Home Market

Takeaways

  • Baby Boomers are expected to drive the second home market for the next 25 to 30 years.
  • Boomers are entering their peak financial years.
  • Second homes are sought after for investment, vacation property and for retirement.

Did you know?

  • Almost 20% of vacation home owners expect to move into their second home for retirement.
Baby Boomers are driving the second home market.A 2006 survey by the National Association of Realtors® found that 36% – more than 3.3 million – of new and existing home sales were for second homes. An earlier survey also found that 15% of recent homebuyers own two or more homes. A driving force behind this level of second home sales is the Baby Boom generation, those born between 1946 and 1964.

This group is now in its peak financial years with the means to purchase additional real estate, and Boomers see two benefits to owning a second home. The first is real estate is typically a good long-term investment. Second homes offer income potential through rental, and the property creates some tax benefits. The second benefit is Baby Boomers are looking toward retirement and many see a future retirement home in the second home.

Big Numbers, Big Buying Power

Second home buyers tend to be older, mostly ranging from 45 to 65, with the largest group trending to the older end of the range. The first wave of Baby Boomers are just now entering their sixties bringing larger numbers and a lot of buying power to the second home market. A simple crunching of these numbers forecasts around 25 or 30 years of strong second home sales driven by the Baby Boom generation.

One effect of this real estate activity could be a steady push on property values in attractive retirement destinations and areas where Boomers are focusing their second -- and maybe even third, fourth or fifth – home investment dollars.

Search for Second Homes for Sale

To search for a selection of second homes for sale, please visit lifestylehomesearch.com, or visit the website of a GMAC Real Estate Office that serves the area where you'd like to buy a second home. To learn more about buying Second Homes or Vacation Homes, explore the rest of this section, or contact a GMAC Real Estate Agent.