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Why Homeowners Retire (& Sell) Early!
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Why Homeowners Retire (& Sell) Early!Daniel Dobbs2023-04-11T10:24:53-07:00
What motivates senior citizens (nationally the fastest growing demographic) to downsize homes is their retirement plans!
But before these homeowners choose an option, they’ll go thru a “thought process” outlined in a study presented by Boston College.
The study: “What Causes Workers to Retire Before They Plan to! a;so presents the “unforeseen circumstances and other forces” at work for seniors nearing a retirement decision.
It may be more people, commercial traffic thru the neighborhood, or a residential treatment home becomes a neighbor or a day care center with an army of “little darlings” invading the tract.
Regardless, as a real estate professional, if you are able to establish rapport, present options, shed light on the homeowners next steps and future alternatives, you will have a BIG step up in developing a successful relationship with this demographic.
I hope this post furthers your marketing efforts! And closing sales!
The Numbers
Roughly 11% of the 40 million Californians today are 65-plus.
The state Department of Finance estimates that by 2020, the over-65 cohort will rise to 15%, then to nearly 20% by 2030, when the youngest of the baby boomers will pass 65, and reach 22.3% by 2050, double the current proportion.
One state document points out: “California surpasses the national avg. for age by 2040, despite currently being the 6th youngest state in the nation.
In the next 15 yrs., those passing the 65-yr. old threshold are mostly white, but later become a more ethnically mixed group.
While the median age of Californians as a whole is about 35 years today, the white median is 44 years, much higher than Latinos (27 years), African American (35 years) or Asians (38 years).
The differentials will narrow over the next 35 years, but even in 2050, the median age of Latinos (38 years) is expected to be 11 years lower than whites (49 years).
The most visible effect of these trends will be in California’s workplaces. Baby boomers are roughly 40% of the 20 million Californians of working age – 25 to 64.
Over the next 15 years the vast majority will leave the labor force, claiming their pensions and Social Security payments & tapping personal retirement accounts & home equity, if they have them.
Uniformed workers – police and firefighters – usually retire in their 50s due to pension benefits that encourage early exits.
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