2014 Baby Boomer Survey
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Transcript of 2014 Baby Boomer Survey
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8/10/2019 2014 Baby Boomer Survey
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BABY BOOMERS INTHE
HOUSING MARKET WHATSAHEAD INTHEIRGOLDENYEARS?
Presented by
Carmen Hirciag, MBA
Senior Research Analyst
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What Defines Boomers?
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WHO ISYOURTYPICAL BABYBOOMER?Demographics
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Typical Baby Boomer
59Years old
58%College
educated
79%Caucasian
56%Married
Medianannual
income:
$75K
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AverageAge: 59
What is your age?
0%
1%
2%
3%
4%
5%
6%
7%
8%
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68
4%
6%
7%
5%
4%
6%5%
4%
6%6%
6%
7%
5% 5% 5%
8%
6%
4%
2%
Age (Years)
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Nearly 6/10 are Married
What is your marital status?
Married 56%
Single 26%
Other 18%
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More than HaveCollege Degree
What is the highest level of education you have completed?
1%
7%
25%
9%
33%
25%
0% 5% 10% 15% 20% 25% 30% 35%
Some high school
High school
Some college
Vocational/technical school
Four-year college
Graduate school
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Very Little DiversityAmong Baby Boomers
What is your ethnic background?
0%
10%
20%
30%
40%
50%
60%
70%
80%
Caucasian/White
Asian AfricanAmerican/ Black
Hispanic/Latino Other
79%
9%4% 4%
4%
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28% Retired, 5.6%Unemployed
What is your profession?
Management7.9%
Sales / retail5.6% Education
Engineer4.8%
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MedianAnnual Income: $75,000
What is your annual household income?
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
7%6%
9%
8%
7% 7%
4%
9%
3%
9%8%
9% 8%
7%
Income (InThousands)
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Current Residence
In which California county do you currently reside?
Other CA 19%
Northern CA
30%
Southern CA51%
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HOME OWNERS
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3/4 Baby Boomers are Home Owners
What is your current living situation?
Own 75%
Rent 22%
Other 3%
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>1/3 are First-time Buyers
Was that your first home purchase?
Yes 36%
No 64%
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Average Number ofYears inCurrent Residence: 16
How many years have you been living in your current residence?
0%
2%
4%
6%
8%
10%
12%
9%
4%4%
5%
6%
4%
2%
3%
1%
4%
2%1%
3%3%
4%
2%2%2%
3%
6%
10%
9%
6%
5%
Years
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8/10 Purchased Homes Before 2007
What year did you purchase your home?
0%
1%
2%
3%
4%
5%
6%
7%
8%9%
Be
fore
1975
1
975-1979
1980-1984
1985
1986
1987
1988
1989
1990
1991
1992
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
4%5%
9%
3%3%3%2%
4%
3%
2%
3%
4%4%
3%3%3%3%
4%3%
2%
1%
3%
2%2%2%
4%
2%
4%4%
3%
3%
Year
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Most Live in Single Family Homes
In which type of home do you currently live?
72%
13%
7%4% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Single f amily Multifamily Condominium Townhouse Other
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Median Purchase Price: $229,000
What was the purchase price of the home?
0%
2%
4%
6%
8%
10%
12%
14%
16%15%
13% 13% 13%
7% 7%
6% 5%4%
3%
7%
5%
3%
Purchase Price (In Thousands)
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Most Have Equity in their Home
Do you have equity in your home?
Yes, 92%
No, 8%
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Majority Plan to Keep HomeOver 20Years
How many years do you plan to keep your home?
0%
2%
4%
6%
8%
10%
12%
14%
16%
0-4years 5-9 years 10-14
years
15-19
years
20-24
years
25-29
years
30-34
years
35-39
years
40-49
years
50 years
7%
8%
12%
9%
16%
10%
12%
6%6%
14%
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Majority of RespondentsWould NotConsiderAcquiring a Reverse Mortgage
Would you consider acquiring a reverse mortgage to assist with living expenses during retirement?
Yes, 21%
No, 79%
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Only 5% HaveGoneThrough Foreclosure/Short Sale
Have you ever gone through a foreclosure or short sale?
Neither, 96%
Short sale, 3%
Foreclosure,
2%
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44% OwnOther Homes
How many other properties do you own?
0%
5%
10%
15%
20%
25%
30%
1 2 3 4 5 6+
26%
10%
3%
1% 1% 2%
Number of Additional Homes
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Majority ofOther Properties are Investments
How are those other properties used?
0%
10%
20%
30%
40%
50%
60%
InvestmentVacation /
second home Other
60%
43%
9%
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RENTERS
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Median Monthly Rent: $945
How much is your monthly rent?
0%
2%
4%
6%
8%
10%
12%
7%
9%
7%7%
4%
10%
9%
7%7%
9%
3%
4%
2% 2%3%
7%
5%
Rent ($)
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Affordable Rent isTop Reason for ChoosingCurrentResidence
What was the most important reason for electing to live in your current residence?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Amenities
Quiet/privacy
Near shopping
School district
Larger space
Near family
Near work
I like the neighborhood
Affordable rent
1%
2%
3%
4%
4%
5%
6%
14%
48%
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Nearly Renters PreviouslyOwned a Home
Have you ever owned a primary residence?
Yes 45%
No 55%
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MajoritySold Home Before 2006
What year did you sell your primary residence?
0%
2%
4%
6%
8%
10%
12%
8%
3%
7%
2%
5%
3%
5%
8%
5%
3%
2%
7% 7%
2%
10%
2%
3%
11%
5% 5%
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Many Sold Home for Family Reasons
Why did you sell your previous primary residence?
0% 5% 10% 15% 20% 25% 30%
Recentrise in home values
Bankruptcy
Opted to become a renter
Short sale
Neededto move forwork
Foreclosure
Neededto move forfamily reasons
2%
8%
11%
15%
15%
23%
27%
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Majority Rent Because theyCant Afford to Buy
Why do you rent instead of buying?
4%
12%
13%
19%
22%
24%
27%
29%
33%
59%
0% 10% 20% 30% 40% 50% 60% 70%
Believe housing market will decline in the near future
No longer able to maintain a home due to health reasons
Not ready to buy
No interest in buying
Enjoy the flexibility/freedom of renting
Don't want the responsibility of owning
Can't qualify for a mortgage
It's easier to rent
Too costly to maintain property as owner
Can't afford to buy
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Nearly Renters Dont Expect to Buy a Home
When do you expect to buy a home?
0%
5%
10%
15%
20%
25%
30%
Within a year In 1-2 Years In 3-5 Years Don't know/
unsure
7%6%
9%
30%
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Improvementin FinancesWould MotivateMost to Buya Home Now
What would most motivate you to buy a home now?
0% 5% 10% 15% 20% 25%
Tax incentives
Improvement in credit score
Favorable interest rates
Improvement in health
Something else
Having money for down payment
Affordable home price
Improvement in finances
1%
2%
2%
3%
5%
14%
15%
21%
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47% Have Debt that Prevents Buying a Home
What type of debt do you have that would make it difficult to buy a home?
0%
5%
10%
15%
20%
25%
30%
35%
Credit cards Auto loan Consolidated
personal loan
Private loan
from friend/relative
Other
35%
12%7%
2%
11%
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OUTLOOKTOWARDSTHEFUTURERetirement and the GoldenYears
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Average Number ofYearsUntil Retirement: 9
In how many years do you plan to retire?
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%20%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 20 25+
1%
4%
9%9%
3%
12%
4%
3%
4%
1%
19%
2%
5%
1% 1%
11%
1%
8%
2%
Years
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Majority Do Not Plan toSellHomeWhen they Retire
Do you plan to sell your current home when you retire?
Yes, 10%
No, 59%
Don't know/
unsure, 32%
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MajorityWont Sell Because they Like their Home
Why do you not plan to sell your current home when you retire?
78%
10%
8%5%
I like myhome
I cannot afford to buy another
retirement homeI plan togivethe home to mychild(ren)
Another reason
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Some Plan to Downsize
What type of new home are you planning on purchasing?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Larger
Other
Same size, but in a different location
Don't know/ unsure
Detached single-family home
Townhouse/ condominium
Smaller
2%
4%
9%
11%
22%
31%
47%
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Others Plan to Move Out of State
Where do you plan on moving when you retire? N = 45
2%
18%
18%
18%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Another Country
Northern CA
Other CA
Southern CA
Another State
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Postponed Retirement Mainly Due to FinancialHardship
Did you have to postpone your date of retirement due to any of the following?
0% 2% 4% 6% 8% 10% 12% 14%
Death of significant other
Loss of pension
Medical bills
Loss of home
Loss of retirement income
Other
Loss of assets/ income due to 2008 economic recession
Loss of employment
Did not save enough money yet
1%
1%
2%
2%
3%
4%
7%
9%
14%
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> Do Not FeelThey have Saved Enough Moneyto RetireComfortably
Do you feel you have saved enough money to retire comfortably?
Yes, 46%No, 54%
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3/10 Live with theirChildren
Do you live with your children?
2%
8%
21%
0%
5%
10%
15%
20%
25%
Yes,I movedin withthem Yes,they moved backin withme
Yes, they never moved out
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Baby Boomers Pay for Most Household Expenses
Please select the correct allocation of responsibility for household expenses. (I pay/children pay)
95%92%
88% 86%
56% 54%
12% 10%
28%
6%
26%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Phone, cable,
internet
Utilities Automobile Rent mortgage Education Other
I pay Children pay
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MedianAmount Paid byChildrenMonthly for LivingExpenses: $325
How much does your child pay each month for living expenses?
0%
2%
4%
6%
8%
10%
12%
14%
16%18%
8% 8%
3%
18%
3%
5%
8%
3%
10%
3%
8%
5%
10%
5% 5%
3%
Living Expenses ($)
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MajorityWorryAboutChildren'sAbility to BecomeHomeOwners
Do you worry about your childrens ability to become home owners in the future?
Yes, 55%No, 45%
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2/5 Plan to Help Children with Down Payment
Do you plan to help your children with their down payment to purchase a home?
Yes, 43%
No, 57%
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What Financial DecisionWould BoomersChange?
If you could change one financial decision that you made within the past 10 years, what would it be?
2%
2%
4%
5%
7%
8%
19%
21%
0% 5% 10% 15% 20% 25%
Moving to the wrong location
Cash out/ open IRA
Carry less debt/ poor credit
Retiring prematurely
Seek better job
Invest in real estate
Better investment decisions
Saving more/ spending less
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ExpandYour Market
Adapt your communications
Expand services
Understand how current economy affects
choices Identify housing options for the 50+ market
Navigate finance options
To learn more visit:
car.org/education/designations/SRES
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THANKYOU!Questions?