Boom, Baby Boomers, BOOM! One of America's Most Lucrative Demographics

Boom Baby Boomers, BOOM! One of America's Most Lucrative Demographics

With more than 75 million people fitting into the American baby boomer demographic, it is easy to understand why this group would be important for REALTORS(R) to understand.

Even more eye-popping to REALTORS(R) is the fact that more than 70 percent of baby boomers own homes, and will be looking to make homeownership changes really soon. This spells big opportunities for REALTORS(R) looking to serve the burgeoning baby boomer market over the next 10-15 years.

NAR takes a deep dive into marketing to baby boomers in its Field Guide to Working With Baby Boomers, which features, among many others, an article from Forbes Magazine entitled "7 Reasons Why Marketing to Baby Boomers Is Unique," which includes the following insights:

1. Baby boomers have money to spend. As opposed to those who grew up in the Great Depression, baby boomers are quite affluent. According to a Nielsen report, they account for $230 billion in sales of consumer-packaged goods like coffee, diet soda and magazines, and make up 70 percent of the nations disposable income. Baby boomers will also inherit $13 trillion in the next 20 years.

2. Baby boomers invented the suburbs. Suburban home development occurred simultaneously with baby boomers ability to make down payments on a mortgage and their desire to leave urban marketplaces. They still live in the suburbs, where many now own 100 percent of their own homes.

3. They plan on living in a better house as they grow older. Seventy percent of baby boomers think their current house is not the best that they can get and they are looking to upgrade. Baby boomers are setting new trends that defy traditional definitions of a "relaxed" retirement. Instead, they are diligently looking for newly constructed homes where they can continue to pursue an active lifestyle surrounded by the latest amenities.

4. Their brand loyalty is tenacious. Once they find a brand they like-one they grew up with-they stick with it; Volkswagen cars, Levi jeans, Harley Davidson motorcycles, Club Med, Noxzema, Leggs. This means that finding out what your baby boomer clients interests are will help guide you toward homes that best meet these trends, and, ultimately, increase the chances of closing a deal.

5. Remembering Woodstock - The famous music festival was a countercultural event which symbolized that the baby boomers were not going to be defined by their parent’s morals and lifestyle. They were going to think and act for they themselves-and they still want to be thought of that way. The least hint of patronizing the baby boomers will flatten any marketing campaign.

6. Baby boomers do use social media, but in a different way. As you develop your social media strategy for baby boomers, be aware that while a 20-year-old is posting photos of their night out on Instagram or Snapchat, a baby boomer is more likely to post a photograph of a new grandbaby or the new RV they just purchased on Facebook. It’s the more "traditional" venues, such as Facebook and Twitter, that are used by baby boomers, so keep your focus there.

7. Baby boomers are not old. Baby boomers do not want to be reminded of their age or be considered as old; rather, they want to be encouraged about their accomplishments and their future. They want to hear about the opportunities that lay before them to experience new chapters in their life.

Other helpful articles in the field guide include "Myths About Boomers and Real Estate," "9 Digital Marketing Strategies to Woo Baby Boomers," and "Baby Boomers Not Showing Any Signs of Downsizing." In addition to marketing resources for the baby boomer market, the field guide also provides tips on reverse mortgage basics, housing trends for the 50+ demographic, related websites relevant to this audience and links to eBooks and other resources.

View the entire Field Guide to Working With Baby Boomers resource from NAR.

To learn much more about how real estate professionals can best serve baby boomers and other 50+ client segments, please consider checking out the education, benefits, and resources offered by SRES(R) Designation. This entire month of September, the featured 25% OFF course at the Center for REALTOR(R) Development is the Seniors Real Estate Specialist (SRES(R)) Designationcourse, which is the basic requirement toward obtaining the SRES(R) Designation.

A version of this article originally appeared on NARs The Members Edge blog. The Members Edge is a blog for new members to learn all about the benefits provided by the National Association of REALTORS(R) (NAR). It is the go-to resource for everything from real estate ethics to tips for interacting with foreign buyers. The information provided in The Members Edge cultivates a capable and educated community of REALTORS(R).

For more information, please visit onlinelearning.realtor.

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WHAT SHOULD HOMEOWNERS KNOW ABOUT ENERGY EFFICIENCY?

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Q: What are the top five things new homeowners need to know about energy efficiency?

A: First-time homebuyers have many questions, ranging in scope from a home's square footage, what the neighborhood is like, whether the asking price is negotiable, and more. Typically, it's not until they receive the first electricity bill that they begin to think about energy efficiency.

As many REALTORS(R) know, new homeowners are one of a kind. They're excited about their purchase, but perhaps nervous about the costs ahead. At Reliant in Texas and NRG Home in the Northeast, we want the electricity bill to be one less thing that causes concern. That's why it's helpful to understand what drives energy use, and how to be more efficient. Naturally, new homeowners consider their REALTOR(R) the go-to source for all things home-related, so here are five energy efficiency tips you can share with first-time homebuyers.

1. Insulation is tops.
For re-sale homes, it's important to make sure the home is well insulated. The most cost-effective improvement any new homeowner can make is adding insulation. Without proper insulation, a home can lose up to 40 percent of cooled or heated air.

2. Heating and cooling account for most energy use.
Did you know that heating and cooling your home can account for up to half of its energy use? Save energy by following these simple tips:

• Follow the 4x4 principle. Setting your thermostat four degrees higher when away from home for more than four hours can help reduce electricity costs.
• Rotate ceiling fans. Turning your fan counter-clockwise during the summer helps create a wind chill effect for a more comfortable living environment. In the winter, set your fan clockwise to move hot air downward.
• Always use the automatic A/C fan setting. Keep your A/C fan on the "auto" position. Turning it to the "on" position can increase energy costs and make it harder for your A/C to maintain the desired temperature.

3. Air filters and vents should not go unnoticed.
Homeowners often overlook replacing air filters, but it's important to change filters regularly to keep your system working efficiently. Also, ensure return air vents are free from obstructions. If air flow is hindered, the system can't operate properly, and your energy bill will suffer.

4. Energy-efficient appliances matter.
If appliances are more than 10 years old, it may be time to invest in new, energy-efficient models, from refrigerators and dishwashers to washers and dryers. Look for the ENERGY STAR(R) label when upgrading.

5. Small actions add up.
Turning lights off when leaving a room and shutting blinds to block summer heat are just a couple simple ways to decrease energy costs and make your home more comfortable and efficient.

For more information, visit www.nrghomepower.com.

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55+ HOUSING MARKET REMAINS IN POSITIVE TERRITORY

Builder confidence in the single-family 55+ housing market remains in positive territory in the second quarter with a reading of 57, up one point from the previous quarter, according to the National Association of Home Builders (NAHB) 55+ Housing Market Index (HMI) released today. This is the ninth consecutive quarter with a reading above 50.

"Builders and developers for the 55+ housing sector continue to report steady demand," says Jim Chapman, chairman of NAHBs 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta. "However, there are many places around the country facing labor and lot shortages, which are hindering production."

There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number above 50 indicates that more builders view conditions as good than poor.

One of the three index components of the 55+ single-family HMI posted an increase from the previous quarter: traffic of prospective buyers increased four points to 42. Present sales held steady at 61 while expected sales for the next six months dropped two points to 69. 

The 55+ multifamily condo HMI dipped one point to 47. The index component for expected sales for the next six months rose three points to 54, while present sales remained even at 49 and traffic of prospective buyers fell seven points to 38.

 Three of the four indices tracking production and demand of 55+ multifamily rentals decreased in the fourth quarter. Present production fell nine points to 51-from a record-high reading in the previous quarter-while current and future demand for existing units both dipped one point to 68 and 67, respectively, and expected future production rose three points to 56.

"Much like the overall housing market, this quarter's 55+ HMI results show that this segment continues its gradual, steady recovery," says NAHB Chief Economist Robert Dietz. "A solid labor market combined with historically low mortgage rates, are enabling 55+ consumers to be able to sell their homes at a favorable price and buy or rent a home in a 55+ community."

 For the full 55+ HMI tables, visit www.nahb.org/55hmi.

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