The Trend-setting Baby Boomers

Did you know that baby boomers own more vacation homes than any other generation in America's past, and because of their influence on the marketplace, mortgages for second homes are getting easier to obtain?

Ever since the end of World War II, when "baby boomers" first made their presence known, marketers have set their sights on satisfying baby boomers' wants and needs. From diaper services in the 1950s, to hula hoops, Barbie and GI Joe for baby boomer pre-teens, to rock and roll for baby boomer teenagers, to the health and wellness industry for baby boomer adults, marketers have tapped into and targeted this trend setting generation for over 50 years.
The baby boom generation is the wealthiest group of retirees the world has ever seen. Born between 1946 and 1964, baby boomers are the single largest demographic group in the world (76 million people), comprising 28% of the population. So it would stand to reason that their trend-setting powers will continue several decades into their golden years. And what will they focus on next? The leisure travel years of pre-retirement and retirement will be near and dear to their hearts. And rightly so, since they have worked a longer productivity peak of any generation before them. Theyve worked hard and invested wisely, and are ready to begin living a vacation lifestyle, floating between two to three vacation residences, each in a unique climate and with a unique appeal.

So, what does that mean for you as a vacation home buyer? There are two benefits. First, it means that until youngest of the baby boom generation reaches retirement age, somewhere around the year 2019, the market for vacation homes will continue to be strong. It also means that their quest for retirement nirvana will continue to drive up the prices of homes in resort areas and quaint towns. With baby boomers having over 8 trillion dollars to spend in real estate over the next decade, theres plenty of room for investors, of all ages, to ride the wave, if they take action before 2009.

The result of this newest baby boom trend will be that land and home values can appreciate anywhere from 10% to 350% a 12-60 month timeframe. You can see it for yourself in the second home market since 1999. Home values, especially for homes near the ocean or lakes, have doubled in less than 24 months. What makes this trend different than past real estate booms is that the baby boomers are driving the economy, not the other way around. The past decades have shown us that their force is in their sheer numbers (28% of the population).

The second benefit is that if you do purchase a vacation property there will be plenty of baby boomer retirees who want to travel but did not amass enough wealth to purchase property in their lifetime. That means theyll be looking for a vacation property to rent!

The first step is that you have to be in the game to win, so if youve been on the fence about investing in a vacation home, now may be a good time to reconsider.

We advise you to become an informed investor, before you make any major decisions about real estate. We highly recommend the book Real Estate Before 2009, which covers the baby boom phenomenon see the link below.