2014 Baby Boomer Survey

8/10/2019 2014 Baby Boomer Survey

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BABY BOOMERS INTHE

HOUSING MARKET WHATSAHEAD INTHEIRGOLDENYEARS?

Presented by

Carmen Hirciag, MBA

Senior Research Analyst


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What Defines Boomers?


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WHO ISYOURTYPICAL BABYBOOMER?Demographics


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Typical Baby Boomer

59Years old

58%College

educated

79%Caucasian

56%Married

Medianannual

income:

$75K


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AverageAge: 59

What is your age?

0%

1%

2%

3%

4%

5%

6%

7%

8%

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68

4%

6%

7%

5%

4%

6%5%

4%

6%6%

6%

7%

5% 5% 5%

8%

6%

4%

2%

Age (Years)


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Nearly 6/10 are Married

What is your marital status?

Married 56%

Single 26%

Other 18%


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More than HaveCollege Degree

What is the highest level of education you have completed?

1%

7%

25%

9%

33%

25%

0% 5% 10% 15% 20% 25% 30% 35%

Some high school

High school

Some college

Vocational/technical school

Four-year college

Graduate school


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Very Little DiversityAmong Baby Boomers

What is your ethnic background?

0%

10%

20%

30%

40%

50%

60%

70%

80%

Caucasian/White

Asian AfricanAmerican/ Black

Hispanic/Latino Other

79%

9%4% 4%

4%


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28% Retired, 5.6%Unemployed

What is your profession?

Management7.9%

Sales / retail5.6% Education

Engineer4.8%


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MedianAnnual Income: $75,000

What is your annual household income?

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

7%6%

9%

8%

7% 7%

4%

9%

3%

9%8%

9% 8%

7%

Income (InThousands)


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Current Residence

In which California county do you currently reside?

Other CA 19%

Northern CA

30%

Southern CA51%


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HOME OWNERS


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3/4 Baby Boomers are Home Owners

What is your current living situation?

Own 75%

Rent 22%

Other 3%


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>1/3 are First-time Buyers

Was that your first home purchase?

Yes 36%

No 64%


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Average Number ofYears inCurrent Residence: 16

How many years have you been living in your current residence?

0%

2%

4%

6%

8%

10%

12%

9%

4%4%

5%

6%

4%

2%

3%

1%

4%

2%1%

3%3%

4%

2%2%2%

3%

6%

10%

9%

6%

5%

Years


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8/10 Purchased Homes Before 2007

What year did you purchase your home?

0%

1%

2%

3%

4%

5%

6%

7%

8%9%

Be

fore

1975

1

975-1979

1980-1984

1985

1986

1987

1988

1989

1990

1991

1992

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

4%5%

9%

3%3%3%2%

4%

3%

2%

3%

4%4%

3%3%3%3%

4%3%

2%

1%

3%

2%2%2%

4%

2%

4%4%

3%

3%

Year


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Most Live in Single Family Homes

In which type of home do you currently live?

72%

13%

7%4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Single f amily Multifamily Condominium Townhouse Other


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Median Purchase Price: $229,000

What was the purchase price of the home?

0%

2%

4%

6%

8%

10%

12%

14%

16%15%

13% 13% 13%

7% 7%

6% 5%4%

3%

7%

5%

3%

Purchase Price (In Thousands)


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Most Have Equity in their Home

Do you have equity in your home?

Yes, 92%

No, 8%


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Majority Plan to Keep HomeOver 20Years

How many years do you plan to keep your home?

0%

2%

4%

6%

8%

10%

12%

14%

16%

0-4years 5-9 years 10-14

years

15-19

years

20-24

years

25-29

years

30-34

years

35-39

years

40-49

years

50 years

7%

8%

12%

9%

16%

10%

12%

6%6%

14%


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Majority of RespondentsWould NotConsiderAcquiring a Reverse Mortgage

Would you consider acquiring a reverse mortgage to assist with living expenses during retirement?

Yes, 21%

No, 79%


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Only 5% HaveGoneThrough Foreclosure/Short Sale

Have you ever gone through a foreclosure or short sale?

Neither, 96%

Short sale, 3%

Foreclosure,

2%


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44% OwnOther Homes

How many other properties do you own?

0%

5%

10%

15%

20%

25%

30%

1 2 3 4 5 6+

26%

10%

3%

1% 1% 2%

Number of Additional Homes


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Majority ofOther Properties are Investments

How are those other properties used?

0%

10%

20%

30%

40%

50%

60%

InvestmentVacation /

second home Other

60%

43%

9%


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RENTERS


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Median Monthly Rent: $945

How much is your monthly rent?

0%

2%

4%

6%

8%

10%

12%

7%

9%

7%7%

4%

10%

9%

7%7%

9%

3%

4%

2% 2%3%

7%

5%

Rent ($)


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Affordable Rent isTop Reason for ChoosingCurrentResidence

What was the most important reason for electing to live in your current residence?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Amenities

Quiet/privacy

Near shopping

School district

Larger space

Near family

Near work

I like the neighborhood

Affordable rent

1%

2%

3%

4%

4%

5%

6%

14%

48%


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Nearly Renters PreviouslyOwned a Home

Have you ever owned a primary residence?

Yes 45%

No 55%


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MajoritySold Home Before 2006

What year did you sell your primary residence?

0%

2%

4%

6%

8%

10%

12%

8%

3%

7%

2%

5%

3%

5%

8%

5%

3%

2%

7% 7%

2%

10%

2%

3%

11%

5% 5%


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Many Sold Home for Family Reasons

Why did you sell your previous primary residence?

0% 5% 10% 15% 20% 25% 30%

Recentrise in home values

Bankruptcy

Opted to become a renter

Short sale

Neededto move forwork

Foreclosure

Neededto move forfamily reasons

2%

8%

11%

15%

15%

23%

27%


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Majority Rent Because theyCant Afford to Buy

Why do you rent instead of buying?

4%

12%

13%

19%

22%

24%

27%

29%

33%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Believe housing market will decline in the near future

No longer able to maintain a home due to health reasons

Not ready to buy

No interest in buying

Enjoy the flexibility/freedom of renting

Don't want the responsibility of owning

Can't qualify for a mortgage

It's easier to rent

Too costly to maintain property as owner

Can't afford to buy


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Nearly Renters Dont Expect to Buy a Home

When do you expect to buy a home?

0%

5%

10%

15%

20%

25%

30%

Within a year In 1-2 Years In 3-5 Years Don't know/

unsure

7%6%

9%

30%


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Improvementin FinancesWould MotivateMost to Buya Home Now

What would most motivate you to buy a home now?

0% 5% 10% 15% 20% 25%

Tax incentives

Improvement in credit score

Favorable interest rates

Improvement in health

Something else

Having money for down payment

Affordable home price

Improvement in finances

1%

2%

2%

3%

5%

14%

15%

21%


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47% Have Debt that Prevents Buying a Home

What type of debt do you have that would make it difficult to buy a home?

0%

5%

10%

15%

20%

25%

30%

35%

Credit cards Auto loan Consolidated

personal loan

Private loan

from friend/relative

Other

35%

12%7%

2%

11%


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OUTLOOKTOWARDSTHEFUTURERetirement and the GoldenYears


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Average Number ofYearsUntil Retirement: 9

In how many years do you plan to retire?

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%20%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 20 25+

1%

4%

9%9%

3%

12%

4%

3%

4%

1%

19%

2%

5%

1% 1%

11%

1%

8%

2%

Years


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Majority Do Not Plan toSellHomeWhen they Retire

Do you plan to sell your current home when you retire?

Yes, 10%

No, 59%

Don't know/

unsure, 32%


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MajorityWont Sell Because they Like their Home

Why do you not plan to sell your current home when you retire?

78%

10%

8%5%

I like myhome

I cannot afford to buy another

retirement homeI plan togivethe home to mychild(ren)

Another reason


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Some Plan to Downsize

What type of new home are you planning on purchasing?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Larger

Other

Same size, but in a different location

Don't know/ unsure

Detached single-family home

Townhouse/ condominium

Smaller

2%

4%

9%

11%

22%

31%

47%


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Others Plan to Move Out of State

Where do you plan on moving when you retire? N = 45

2%

18%

18%

18%

44%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Another Country

Northern CA

Other CA

Southern CA

Another State


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Postponed Retirement Mainly Due to FinancialHardship

Did you have to postpone your date of retirement due to any of the following?

0% 2% 4% 6% 8% 10% 12% 14%

Death of significant other

Loss of pension

Medical bills

Loss of home

Loss of retirement income

Other

Loss of assets/ income due to 2008 economic recession

Loss of employment

Did not save enough money yet

1%

1%

2%

2%

3%

4%

7%

9%

14%


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> Do Not FeelThey have Saved Enough Moneyto RetireComfortably

Do you feel you have saved enough money to retire comfortably?

Yes, 46%No, 54%


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3/10 Live with theirChildren

Do you live with your children?

2%

8%

21%

0%

5%

10%

15%

20%

25%

Yes,I movedin withthem Yes,they moved backin withme

Yes, they never moved out


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Baby Boomers Pay for Most Household Expenses

Please select the correct allocation of responsibility for household expenses. (I pay/children pay)

95%92%

88% 86%

56% 54%

12% 10%

28%

6%

26%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Phone, cable,

internet

Utilities Automobile Rent mortgage Education Other

I pay Children pay


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MedianAmount Paid byChildrenMonthly for LivingExpenses: $325

How much does your child pay each month for living expenses?

0%

2%

4%

6%

8%

10%

12%

14%

16%18%

8% 8%

3%

18%

3%

5%

8%

3%

10%

3%

8%

5%

10%

5% 5%

3%

Living Expenses ($)


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MajorityWorryAboutChildren'sAbility to BecomeHomeOwners

Do you worry about your childrens ability to become home owners in the future?

Yes, 55%No, 45%


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2/5 Plan to Help Children with Down Payment

Do you plan to help your children with their down payment to purchase a home?

Yes, 43%

No, 57%


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What Financial DecisionWould BoomersChange?

If you could change one financial decision that you made within the past 10 years, what would it be?

2%

2%

4%

5%

7%

8%

19%

21%

0% 5% 10% 15% 20% 25%

Moving to the wrong location

Cash out/ open IRA

Carry less debt/ poor credit

Retiring prematurely

Seek better job

Invest in real estate

Better investment decisions

Saving more/ spending less


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ExpandYour Market

Adapt your communications

Expand services

Understand how current economy affects

choices Identify housing options for the 50+ market

Navigate finance options

To learn more visit:

car.org/education/designations/SRES


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THANKYOU!Questions?

[email protected]

2014 Baby Boomer Survey

Documents

Transcript of 2014 Baby Boomer Survey