Baby Boomers are Starting to Upsize Instead of Downsize
Did you think that you read that title wrong? Our society is used to seeing retiring generations downsizing their houses as their children have grown and left the house, however things are changing. However, according to a study by Merrill Lynch, over 30 percent of baby boomers are beginning to upsize their house for retirement.
Baby Boomers are Financially Secure
The majority of baby boomers are not worried about their financial security. They are doing well and find themselves secure, leaving them in a position where they do not need to downsize as they retire.
However, this does not mean that baby boomers are looking to spend more on their house. They are starting to look for larger houses that are in more affordable areas.
The Need for More Space
There are several reasons that boomers are looking for more room at home during retirement. For married couples, they are often looking to have room to spread out within the home. When you have two adults constantly at home together who are not used to being in that position, they can start to want their own space. A larger house provides them with additional rooms to spread out in.
Many couples prefer to increase the number of bedrooms they have so both partners can have the room they want. She might want a craft room and he wants a man cave. They don’t want to lose the guest bedroom for when family comes in to town, so upsizing is the perfect option.
Having Visitors
Baby boomers are also looking to entertain and have room for family and friends to visit. Having additional bedrooms in their home allows them to have room for their children and grandchildren to come and visit. Now that it is more common for families to be located throughout the county, boomers like to have a place to host their children when they are coming to visit.
Larger houses with open floor plans create nice entertaining places for friends. This is an appeal to baby boomers in the same way it is to millennials.
Looking for Amenities
Some baby boomers are looking to purchase homes that are within neighborhoods and homeowner’s associations with great amenities. They might be looking for a fitness room, pool, and access to a golf course. Larger houses within these communities provide boomers with everything they are looking for.
The study by Merrill Lynch also found that the majority of baby boomers are still looking to down size. There are still plenty of retirees who are looking to save money by reducing the amount of house that they have.
However, there is an upward swing in the amount of retirees that are increasing the square footage of their homes. Many couples have raised their families in houses, or downsize when their children left home, and are now realizing that they want that extra room back.
And, Generation X is following in the footsteps of their parents. Many are deciding to upgrade now, as opposed to waiting until their children leave home.