NAR Forecasts Top Markets For Baby Boomers In 2015

Posted by Patrick Barnard on December 15, 2014 No Comments
Categories : Residential Mortgage

Want to know which U.S. cities are forecast to attract the most baby boomers in 2015?

A recent report from the National Association of Realtors (NAR) predicts that Boise, Idaho, and Raleigh, N.C., will be the hottest markets for baby boomers in the new year, due mainly to their solid job growth, share of self-employed workers and affordable home prices.

Other markets with strong potential for attracting baby boomer home buyers include Albuquerque, N.M.; Denver; Fort Myers, Fla.; Greenville, S.C.; Orlando, Fla.; Phoenix; Sarasota, Fla.; Tucson, Ariz.; Chattanooga, Tenn.; Dallas; McAllen, Texas; Riverside, Calif.; and Tampa, Fla.

As per the report, Florida and Arizona continue to be hot states for baby boomers looking to settle into retirement: Each of these states includes several cities that are predicted to see increasing levels of retirees. However, this is to be expected, as areas with a lower cost of living and sunnier weather have traditionally been more popular among the elderly.

To determine which markets are most likely to see a boost in sales from baby boomers, NAR took into account current population trends, housing affordability and local economic conditions.

Lawrence Yun, chief economist for NAR, says a ‘broadly improving economy and rebounding home prices are giving baby boomers the opportunity to sell and move to support their retirement lifestyle.’

‘Furthermore, our research identified cities that movers are gravitating to while still remaining in the workforce as a business owner,’ Yun says.

‘These metro areas are attractive to baby boomers because of their housing affordability, lower tax rates and welcoming business environment,’ Yun adds. ‘With baby boomers working later in life, these factors will likely play as much of a deciding role in where boomers eventually retire as will areas with a warm climate or variety of outdoor activities.’

According to a NAR generational study of home buyers and sellers released earlier this year, baby boomers represented 30% of all buyers, had a median household income of $92,400 and bought a home that had an average cost of $210,000.

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