An Aging Problem
Boomtown, a blog by Joanna Harrison, has some great advice about a real estate investment opportunity. You see, according to Harrison, America has an aging population which will soon turn into an aging problem. “Currently, the median age is 37.8, (up from 30.0 in 1980, and 28.4 in 1970) and the median age of homebuyers is 44. This demographic shift is happening for a few reasons – decreasing fertility rate, shifting cultural norms, improvements in medicine, and the sheer size of the baby boomer generation.” There will be many changes in real estate involving the elderly, and that could mean many new sellers.
Where does Kansas City fit in?
Do your research. Is it a city of young people or a city with an aging population? If aging, then there is a real opportunity for those prepared.
America Has an Aging Problem
She says this growing market means one thing – opportunity. You can capitalize on this niche market and position yourself as an expert for senior homebuyers. Harrison outlines a strategy for becoming the real estate solutions company or go-to agent for seniors.
Consider these statistics from the 2017 NAR study Home Buyer and Seller Generational Trends Report:
Buyers age 52-61: “The Young Baby Boomers”
Makeup: 16% of recent buyers
Higher median household incomes
More likely to have children under the age of 18 in their home
More likely to buy multi-generational homes
Buy for an array of reasons, such as job-relocation, downsizing, and being close to friends and family
Buyers age 62-70: “The Older Baby Boomers”
Makeup: 14% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Typically move the longest distance
Least likely to make compromises on their home purchase
Buyers age 71-91: “The Silent Generation”
Makeup: 8% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Least likely to purchase a detached single-family home
24% purchased in senior-related housing
Tend to purchase the newest homes
More likely than any other age group to find their home by visiting an open house
America Has an Aging Problem – Seniors are concerned about the following;
- Seniors are often targeted for property theft, so have information on hand about the neighborhood crime rate.
- Are there stairs? Does the neighborhood have a lot of hills?
- Most seniors aren’t concerned with flash or grandiose. Even if they have a hefty budget, they are likely in the process of downsizing. Keep this in mind with the listings that you show, and consider offering educational tools to help with the downsizing process.
- Along with downsizing, most seniors are looking for a reasonable home to spend the last phase of their lives. Affordability is a concern, especially on a restrictive retirement and/or social security budget.
- Is the home in a gated community, or a neighborhood with amenities close by? Seniors don’t want to have to travel far to get to the grocery store, the gym, or their doctor. Be sure to know the distance and accessibility of hospitals, grocery stores, etc.
Know these back and forth. Equip yourself with resources that can aid both the homebuyer and home seller in their process. This is how you can make yourself valuable.
Ask for FREE information about How to Sell Your House Fast.
Terra Firma Property Solutions, LLC is a professional, full-service real estate solutions firm.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
