Baby Boomer Retirees and Downsizing

3 Replies

I'm curious of your thoughts on the Baby Boomer Retirees rental market and smaller properties. I have considered getting into rental property that caters to this group even down to consideration of property layout etc. has anyone dabbled in this market or have considered it?

@Anthony Joseph Kendall II

It's a great place to focus. I think it's perfect for the times. My estimation is there are three factors that will force downsize. I imagine you could do best catering/specializing in any one of these you felt most appealing:

1) Baby boomers who downsize to spend money on 'Other Things'

These are your well-prepared retirees who are letting go of the family home. Likely moving to a hipper area, or one that resonates more with their goals. They like experiences, and high class living. Imagine they are great for flips and higher end commercial units.

2) Baby boomers forced to financially downsize

In the near term, this is your largest market. Under-prepared and heading into retirement. These ones will be interested in better value for money. May not compromise on quality, but size is a huge variable they can play. I actually think this will attract tiny home and higher-end mobile home interest.

3) Baby boomers forced to physically downsize

Mobility and health changes force some to move to easier units. Ranch style, wider hallways, less yard work. Some negative aspects of home ownership are becoming tough for homeowners with limited mobility and changing health.

I have seen investors and developers make plans to focus on any of the three. Not a bad idea if you have a little time to sit on them.

@Anthony Joseph Kendall II  Fantastic idea!  We Baby Boomers are getting up there in age, you know.  LOL

@Trevor Ewen  I'm one of those Baby Boomers who could benefit from a financial downsize and physical mobility property change, but not right now.  We've had our rural bilevel "farmette" for a little over 10 yrs but now I'm virtually restricted to the upper level only unless I absolutely MUST get out of the house.  I just can't do the stairs anymore.

Financially, I know we'd benefit from moving to a smaller house with less acreage, but since I married a man 8 yrs my junior who loves raising livestock, and since I love where we live, we've decided to supplement our social security disability with REI instead so we can earn the money needed to upgrade/remodel our house to make it more mobility friendly for the future.

But you all gave me a great idea to think about - carve out a niche to target the Baby Boomer market in our area.

I think the real added value could be to also offer the sale of their home either through wholesale or buy/fix/sell.  I'm trying to determine if an inclusive plan/organization is better than dividing it up.  It's sort of like one stop shop and it simplifies the process.

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