Baby Boomers
By: Melina Duggal, AICP
Baby boomers are those people born between the years of 1946 and 1964; in 2011, they are between the ages of 47 and
65. The approximately 75 million U.S. baby boomers represent 25% of the nation’s population. Baby boomers have
influenced popular culture throughout their lifetimes and have had a dramatic impact on the homebuilding industry
in the last 20 years. The leading-edge boomers (those born between 1946 and 1955 and aged 56 to 65) are reaching the
traditional retirement age, yet most indicate they still plan to work in the future. In fact, according to a survey by Del
Webb, both boomers planning for retirement and those living in retirement are planning to include working as part of
their lives. (Del Webb, 2010) Among young Boomers, 72% plan to work. For older Boomers not yet retired, 74% plan
to work. Most trailing-edge boomers (those born between 1956 and 1964 and aged 47 to 55) are either in the mature
family phase of life or are empty nesters. They are at a peak life stage for purchasing a second home, and often are considering their future plans when making that purchase.
Buyer Profiles
For the leading edge boomers, approximately one-quarter to one-third of those over the age of 55 plan to move in
retirement (Taylor, 2010) (Del Webb, 2010). Research from these sources indicates that approximately 20% to 30%
of those buyers would be interested in an Active Adult Community (AAC), 30% to 40% would prefer an all age community, and the rest have no preference. According to the National Association of Homebuilders (NAHB) and MetLife
Mature Market Institute, the number one reason single-family detached buyers in this age category move are for family
or personal reasons, followed by the desire to have a better quality home (NAHB and MetLife Mature Market Institute,
2011). For those who chose multifamily, the number one reason is still for family or personal reasons, but the second
is for the desire for less expensive housing.
For those that choose an AAC, the literature indicates that this segment of boomers is wealthier, better educated,
healthier, and more demanding in terms of housing and other product choices than previous generations were at this
age. In addition to recreation, they seek enriching experiences, and expect their future living situation to be a gateway
to their ideal lifestyle. They want original and authentic places, rather than places with a mass-produced or “cookiecutter” feel. Those who gravitate toward planned communities have a strong desire to connect and engage socially, to
become part of a community. They also are concerned about the environment. For some, living in a community that
mitigates the impact they have on their natural surroundings is a further attraction. The majority of 55+ households
do not live in age-qualified or age-restricted housing, however, the percentage of households that chose that type of
housing has stayed relatively consistent since 2005, suggesting the demand for that type of housing could grow as the
number of households aged 55+ grows each year. (NAHB and MetLife Mature Market Institute, 2011)
Another segment of the baby boomer market is considering a second home purchase (typically the younger boomers). Of the 24% of respondents to the Resort Real Estate Consumer Survey who indicated that they plan to purchase
a vacation property within the next two years, 42% of them were baby boomers (Kelsey, Norden, & Humber, 2010).
More than half of the boomer responders indicated that it is likely that their vacation home will become their future
retirement home. These buyers are focused on resort-style living with amenities and programming that focuses on
health and wellness.
Residential Product Trends
As the profile of the baby boomer buyer changes, the products they desire are changing too. While the typical retiree
purchaser generally has downsized to a smaller home, according to the NAHB the median size of a home in an AAC
has increased from a median of 1,700 square feet in 2001 to 2,100 square feet in 2009. (NAHB and MetLife Mature Market Institute, 2011) This increase in size can be partially explained by the increased need for home offices by leadingedge boomers as they continue their careers at home. A consideration for builders is making sure homes are wired for
the internet. Even those boomers who don’t work are often very plugged in. In addition, boomers have accumulated
a lot of “stuff ” and need more room to store it. The image below from the Eagle Creek Baby Boomer house features a
guest suite on the second floor. Boomers also are looking for homes that they can “age into,” so universal design features
are important.
Another trend that is surfacing is the growing acceptance of two-level homes. While the close to retirement market
still expects a first-floor master suite, a second level is gaining popularity as visitor quarters, home office space, in-law
suites, and/or rooms to accommodate boomers’ numerous newfound hobbies.
Guest suite on the second floor at the Eagle Creek Baby Boomer house
C. 2011 James F. Wilson/Courtesy Builder magazine
While products and housing designs are being reinvented from the outside, it is important to understand what boomers are seeking inside their homes. From a design perspective, many boomers want a unique home that accentuates
their unique lifestyle, so the ability to customize floor plans to fit individual uses is becoming increasingly important.
While boomers appreciate having more space, they seem to prefer efficiently designed space over volume. They also express an increased demand for more natural light in homes, so builders are including more and larger windows in new
model homes. Entertaining is extremely important at this life stage, so an open floor plan that allows easy movement
and staging space is important to buyers. This type of floor plan also has made the kitchen the center of attention and
continues to offer a traditional dining room as the active adult buyer often moves with their dining room set. This is
shown in the following image from the Baby Boomer house with multiple options for dining including a formal dining
room and a bar.
Multiple dining
options
C. 2011 James F.
Wilson/Courtesy
Builder magazine
Community Design Trends
Many within the homebuilding industry are questioning the future role of AAC given the potentially changing shifts of
boomer preferences versus the previous generations. One of the largest community design trends in communities targeting older buyers has been the shift from the golf-oriented community to a non-golf orientation. (A large part of this
shift can be explained by builders’ increased difficulty in getting entitlements for golf courses because of the associated
environmental issues.) Golf courses are no longer the only organizing principles of such communities, with community activity centers, trails, the natural landscape and topographic features also being utilized to create a central theme
and focal point. What developers and others have learned is that it is not golf per se that attracts these buyers, it’s the
recreational and social aspects of the game, which can be found in other pursuits as well, not just golf. One benefit of
the golf course, of course, is that it resulted in premiums for golf front lots, which ideally generated additional revenue
to help pay for the construction of the golf course. But doing a better job of incorporating significant terrain features,
natural areas, view-oriented open space, and water features into the community design can yield similar premiums at
lower costs. Such communities typically include both active and passive parks, and make it possible for more residents
to access the community’s natural amenities, whether their home is fronting on such features or nearby.
Baby boomers are not really a single group or category, with segments both attracted to some types of communities
and segments who wouldn’t be caught dead there. Many are seeking a unique destination that offers the sort of design
authenticity often lacking in conventional subdivisions and many AACs. A large share of the upscale boomer segment
rejects the cookie-cutter models of the past, and express an interest in greater diversity in streetscapes, street patterns,
and places that offer regionally specific geographic, historical, or themed products. Taking steps to create a community
with an authentic feel is gaining in popularity across the board, and is considered by many to be an “X factor” that
draws buyers to a site. Nonetheless it’s important to remember that the boomers are a large and diverse group, and one
size does not fit all. Successful community developers and builders learn what appeals to the specific segments within
the boomer population most readily attracted to their community, and deliver it.
Bibliography
Del Webb. (2010). 2010 Del Webb Baby Boomer Survey. Del Webb.
Kelsey, C., Norden, D., & Humber, C. (2010). Kelsey & Norden Resort Real Estate Survey, Consumer Trends Emerging from
Economic Crisis. Whitefish, Montana: Kelsey & Norden.
NAHB and MetLife Mature Market Institute. (2011). Housing Trends Update for the 55+ Market, New Insights from the
American Housing Survey. Westport: MetLife
National Association of Realtors. (2011). The 2011 Community Preference Survey. Washington, D.C.: Belden Russonello &
Stewart.
RCLCO. (2008). Consumer Survey of Gen X and Gen Y. Bethesda, Maryland: RCLCO.
RCLCO. (March 2011). RCLCO Announces Top-Selling U.S. Master-Planned Communities in 2010. Bethesda, MD: RCLCO.
RCLCO. (July 2011). RCLCO Special Advisory, Trends in Top-Selling Master Planned Communities. Bethesda, Maryland:
RCLCO.
Taylor, J. (2010). 2010 Wealth Study. Harrison Group and American Express.
The American Affluence Research Center. (Spring 2011). The Flluent market Tracking Study #19. Alpharetta, GA: American
Affluence Research Center.
Melina Duggal, AICP, is a Senior Principal in RCLCO’s Orlando, Florida office. She specializes
in housing, demographic and consumer trends, regional growth patterns, large-scale projects,
transit-oriented development, and urban mixed-use developments.