SEPTEMBER ISSUE With 4 million baby boomers retiring every year, for the next 20 years, what impacts will it have on our luxury real estate market?
The Luxury Panel is a rotating group of San Diego’s top Real Estate professionals
who specialize in the luxury market sharing their expertise on hot topics and home buyer & seller questions.
With 4 million baby boomers retiring every year, for the next 20 years, what impacts will it have on our luxury real estate market?
“San Diego is flourishing with successful biotech and technology companies. Their employees will be enticed by the luxury real estate which shall be for sale due to the downsizing or migrating boomers to be closer to family. Others may continue to live in their homes with resort-style amenities, outdoor living, space for grandchildren and ultimately sell down the line to a smaller well-appointed home. I specialize in Santaluz, a multi-generational luxury lifestyle gated community for all to enjoy.”
Eileen M. Anderson Keller Williams Realty
“With the desire to downsize as one gets older, it could have a negative impact on the larger homes in the high end/luxury market as they choose to sell and go to smaller homes with less upkeep and expense. I also feel the retirees will look to be in a more urban/walkable environment as they get older. This could in turn increase values substantially in luxury condos and smaller homes in the coastal communities. In effect, there will be positive and negative impacts as we see this transition occur.”
Berkshire Hathaway HomeServices California Properties
“The impact of retiring baby boomers on the luxury market will likely be negative on larger homes and positive on smaller homes and condos, particularly one-levels and those with elevators. Potential move-up millennials are not purchasing homes as fast as before to provide the move-up trend to more luxury homes. Bloomberg predicts that the number of renters 65 and older will double between 2010 – 2030 to 12.2 million. We recently had 2 clients who refinanced their current home to purchase their downsize home with cash before selling.”
Phil and Pam Reed
Willis Allen Real Estate email@example.com
“Community and convenience, remain top considerations for Baby Boomers. About four million Baby Boomers will retire this year and of those, about half will buy one or more luxury properties within twelve months. Often, money is flowing from the Baby Boomer to their children in the form of large down payments for luxury homes. For many boomers, the down payment is a safe and tax-free way to transfer wealth to their kids.”
Marie Jo Atkins
Pacific Sotheby’s International Realty
“Luxury will be simply… simplified as baby boomers look to “right size” and focus on travel, investing time and money in experiences. Our luxury market has been historically a “bargain” as compared to LA, OC and SF. Many boomers looking to duplicate their existing lifestyles in these areas will look to San Diego as an affordable option without sacrificing size, quality, or lifestyle.”