Boomers Lead In Second Home Purchases Coast To Coast
Baby Boomers, those born between 1946 and 1964, are leading a surge in second-home buying for investment, vacation properties and retirement
NAEBA agents witness Boomer clientele on the rise in 2010
AVONDALE, AZ — The Baby Boomer Generation, the vanguard of economic and social trends since the 1950s when their swelling numbers forced a drastic increase in public school building, are now the leading edge in the surge of purchasing second homes throughout the country.
Boomers are buying second homes for investment, vacation properties and in many cases eventual retirement homes, and statistics show that one of the key buying features for a second home is its proximity to water.
Second home ownership in the United States reached an all-time high in 2006. The National Association of Realtors reported 3.34 million second homes were acquired that year -- 40% of all residential sales for the period. Of that 40%, 27.7% were purchased as an investment and 12.2% were purchased as vacation homes.
Baby Boomers lead the buying in 2006, with home buyers averaging 52 years old with an average earned income of $82,800. They paid an average of $204,000 for a vacation home and an average of $183,000 for a second home used as an investment.
Today, that trend continues; people over 55 bought 21% of all homes sold in 2008. To back up the trend, Newsweek magazine reported on Jan. 4, 2010 that 1 in 4 Boomers owns a vacation home, land or rental property in addition to their primary residence.
These statistics come as no surprise to the National Association of Exclusive Buyers Agents (www.naeba.org)
“Second home ownership has changed considerably over the last 2 years,” says Benjamin Clark , 2009-2010 President of NAEBA, headquartered in Avondale, AZ with members across the United States and Canada.
Buying trends for second homes reveal that water features — proximity to the ocean, coastlines, and inland lakes—are often the determining factor. MSN Money, an influential website with a wide variety of news and information, in January reported its Readers picks of the 10-best second-home markets, which clearly shows the preferences. Based on nominations from readers, the 10 best places for a second home are:
• Red Lodge, Mont.
• Daufuskie Island, S.C.
• Cannon Beach, Ore.
• Plymouth, Vt.
• Ruidoso, N.M.
• Lake of the Ozarks, Mo.
• Olcott Beach, N.Y.
• Harbor Country, Mich.
• Gulf Shores, Ala.
• San Luis Obispo, Calif.
In addition to water and other recreational amenities, another factor upon which voters based their recommendations for the list included areas experiencing increasing property values—good news for the economy overall. Also, according to the survey, many Baby Boomers purchasing second homes are seeking out “transitional”
NAEBA is a growing association of real estate agents who represent only buyers in transactions, a relationship of commitment and trust that ensures the needs of purchasers in home buying have their own champion free of conflicts of interest inherent in many traditional transactions.
Exclusive Buyers Agents do not list homes; they represent buyers only. The NAEBA premise is that no one real estate agent can do both well.
To find a NAEBA agent in your state, visit www.naeba.org. For information about NAEBA, contact Kimberly Kahl, CAE, NAEBA Executive Director at 888-NAEBA99.