Business with the Boomer and Beyond

On life's Real Estate Journey...

Jody OBrien ABR, CBR, GRI

Generational Shifts

“The only ship you can truly steer in

this ocean is the one you're sailing.

Quit trying to alter the winds;

harness them.”

― Richelle E. Goodrich

The Generations of the 1900’s• The Lost Generation 1900-1925• Silent Generation 1925-1945• Baby Boomers 1945-1965• Generation X 1965-1980• Generation Y 1980-2000

Baby Boomers

Dr. Spock’s Toddlers

Hippy’s of the 1960

Capitalistic

Middle Class

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Largest Group of Retiree’s

Generational Shifts

1. Aging baby boomers (55 to 64 years old): They will keep working, and many will be forced to stay in their suburban homes until values recover. Those who are able to move will choose mixed-age living environments that cater to active lifestyles. Walkable suburban town centers also will appeal to this group.2. Younger baby boomers (46 to 54 years old): They are now entering their prime earning years but they will lack home equity and unlike the older members of their generation, they won’t be able to purchase second homes. This will likely curb the prospects for the second-home market.

• Urban Land Institute

Boomer Household• 67% of Boomers live in 2

person households• 25% of Boomers live

alone• In 2006 NAR determined

that Boomers median years to say in current home was 5 years

• In a 2005 Pulte Homes study, 60% of Boomers did not want age restricted housing

0%10%20%30%40%

Larger Home

LargerHome

Size MattersThe size of the average America home shrunk by11% in 2009, a faster rate than any time sincethe 1970s

6% of Aging Boomers

31% of Younger Boomers

McMansions

Peak Family Size and Income 1990-2010

Jewel Box HomesWhat do Boomers want? Think marble floors, granite countertops, commercial-grade appliances, vegetable sinks, bidets, bathroom refrigerators, built-in vacuums, separate showers, steam rooms and Jacuzzis, eyebrow windows, French doors, interior gardens and water features, renewable flooring surfaces, in-home recycling centers, media rooms with built-in screens and projection systems, dual master suites with walk-in closets—all rendered on a smaller scale in a 2,000 square foot floor plan.

Agelessons.com

Second Homes/Investment Real Estate

• Largest amount of real estate equity• 25% own second piece of real estate• 5% own a vacation home• 39% say they intend to make their

seasonal home their primary residence

Use of the Internet

If your image of a computer geek is a scruffy, awkward kid in T-shirt and jeans, you may want to think again. The biggest technology adopters may well be the affluent over-50 powerhouse known as the Baby Boomer.

Brian Proffitt

Use of the internet

92%

86%

91%

79%83%

70%

75%

80%

85%

90%

95%

Seekinginformation

PrePurchaseProductResearch

Read onlinearticles

Respond toe‐mail

promotions

Visit website fromprint ad

Tell Two Friends……

96%84%

71%

0%

20%

40%

60%

80%

100%

120%

Share info withfamily

Share info withchildren

Share withcoworkers

Where have all the Boomers Gone?

Prepared

• 1031 Tax Exchanges• Zoning Changes – mixed use development• Referral Database in Secondary Home

Locations• Cultural Diversity Training –

multigenerational households• Financial Alternatives – seller

Redefine Your Value Proposition

What do you bring to the process? An agent of change? Can leverage generational shift for

future success?

Jody O’BrienThe RE/Education Company

Committed to Professionalism in Real Estate through EducationBlogwww.reeducator.wordpress.comPresentationwww.slideshare.net/ReEducationCompanySocial Mediawww.twitter.com/reeducatorwww.youtube.com/msreeducatorwww.facebook.com/reeducatorwww.linkedin.com/in/reeductor

Thank You