WCR Business with the Boomer and Beyond
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Transcript of WCR Business with the Boomer and Beyond
Business with the Boomer and Beyond
On life's Real Estate Journey...
Jody OBrien ABR, CBR, GRI
Generational Shifts
“The only ship you can truly steer in
this ocean is the one you're sailing.
Quit trying to alter the winds;
harness them.”
― Richelle E. Goodrich
The Generations of the 1900’s• The Lost Generation 1900-1925• Silent Generation 1925-1945• Baby Boomers 1945-1965• Generation X 1965-1980• Generation Y 1980-2000
Baby Boomers
Dr. Spock’s Toddlers
Hippy’s of the 1960
Capitalistic
Middle Class
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Largest Group of Retiree’s
Generational Shifts
1. Aging baby boomers (55 to 64 years old): They will keep working, and many will be forced to stay in their suburban homes until values recover. Those who are able to move will choose mixed-age living environments that cater to active lifestyles. Walkable suburban town centers also will appeal to this group.2. Younger baby boomers (46 to 54 years old): They are now entering their prime earning years but they will lack home equity and unlike the older members of their generation, they won’t be able to purchase second homes. This will likely curb the prospects for the second-home market.
• Urban Land Institute
Boomer Household• 67% of Boomers live in 2
person households• 25% of Boomers live
alone• In 2006 NAR determined
that Boomers median years to say in current home was 5 years
• In a 2005 Pulte Homes study, 60% of Boomers did not want age restricted housing
0%10%20%30%40%
Larger Home
LargerHome
Size MattersThe size of the average America home shrunk by11% in 2009, a faster rate than any time sincethe 1970s
6% of Aging Boomers
31% of Younger Boomers
McMansions
Peak Family Size and Income 1990-2010
Jewel Box HomesWhat do Boomers want? Think marble floors, granite countertops, commercial-grade appliances, vegetable sinks, bidets, bathroom refrigerators, built-in vacuums, separate showers, steam rooms and Jacuzzis, eyebrow windows, French doors, interior gardens and water features, renewable flooring surfaces, in-home recycling centers, media rooms with built-in screens and projection systems, dual master suites with walk-in closets—all rendered on a smaller scale in a 2,000 square foot floor plan.
Agelessons.com
Second Homes/Investment Real Estate
• Largest amount of real estate equity• 25% own second piece of real estate• 5% own a vacation home• 39% say they intend to make their
seasonal home their primary residence
Use of the Internet
If your image of a computer geek is a scruffy, awkward kid in T-shirt and jeans, you may want to think again. The biggest technology adopters may well be the affluent over-50 powerhouse known as the Baby Boomer.
Brian Proffitt
Use of the internet
92%
86%
91%
79%83%
70%
75%
80%
85%
90%
95%
Seekinginformation
PrePurchaseProductResearch
Read onlinearticles
Respond toe‐mail
promotions
Visit website fromprint ad
Tell Two Friends……
96%84%
71%
0%
20%
40%
60%
80%
100%
120%
Share info withfamily
Share info withchildren
Share withcoworkers
Where have all the Boomers Gone?
Prepared
• 1031 Tax Exchanges• Zoning Changes – mixed use development• Referral Database in Secondary Home
Locations• Cultural Diversity Training –
multigenerational households• Financial Alternatives – seller
Redefine Your Value Proposition
What do you bring to the process? An agent of change? Can leverage generational shift for
future success?
Jody O’BrienThe RE/Education Company
Committed to Professionalism in Real Estate through EducationBlogwww.reeducator.wordpress.comPresentationwww.slideshare.net/ReEducationCompanySocial Mediawww.twitter.com/reeducatorwww.youtube.com/msreeducatorwww.facebook.com/reeducatorwww.linkedin.com/in/reeductor
Thank You