The second home market is experiencing a boom time, 1/3 of all homes sold last year were for second homes. Many of these second homes were bought for investment also, to be rented or for tax benefits and appreciation. Many will be used as retirement residences in the future.
76 million baby boomers will retire in the next 15 years. The biggest number of boomers turned 50 this year and last, and at 50 years old, statistically people begin to shop for a retirement residence.
Where do boomers want to be in retirement? On a golf course? Although many do, most want to be in walkable communities, with shopping and dining options. Many want to return to school, and pursue educational interests they never had time for before.
Do boomers want McMansions? Although some do, most will not be able to afford larger homes in retirement and will opt for more communal living options like condos and townhouses and smaller cottage-style communities.
Smaller more efficient spaces that require less upkeep and maintenance will be even more popular. 2005 saw record number of condo sales.
But with these smaller spaces, boomers will require more luxury and ammenities. Upscale baths and kitchens, high-tech wiring, luxury trim and quality. Outside their living space, communities will need to provide Work out facilities, pools, and communal gathering spaces.
By sharing the cost of these facilities, boomers will be able to afford the lifestyle for which they desire and have become accustomed to while affording multiple homes in retirement.
Bob Waun , Founder & CEO
bwaun@vacation-finance.com
Bob is CEO and Founder of Vacation Finance, America's First Second-Home Lender. As a VP at Paramount Bank, and while at Wells Fargo, Bob innovated lending for Condo Hotel projects. He holds a Master's degree in finance/economics and BBA in finance from Walsh College and a MI Real Estate Broker's License. He has personally lent over $750+ million in residential loans, and over seen operations lending $1+billion. He has been a professional guest speaker and taught numerous courses/seminars on real estate finance.
He managed controlled business relationships for a national real estate brokerage in MI and OH, held top sales honors for Wells Fargo in 7 states. Bob has a 17 year track record of cutting-edge innovation in the mortgage finance.