According to a study by Merrill Lynch, recently reported in the Los Angeles Times, retirees have the demographic power and wealth to drive housing trends over the next decade, as baby boomers and elders are buying or altering homes to live in them longer or to accommodate family members. People older than 65 are expected to be the fastest-growth demographic from 2015 to 2025, accounting for 10.7 million new households. That’s five times more than the next-largest generation of 34- to 44-year-olds.
According to the study, almost a third of baby boomers and their elders are choosing to buy larger homes in retirement instead of downsizing, and many retirees are altering their homes as they get older as an alternative to moving to institutionalized settings.
The Bank of America Corp. unit said its survey of 3,638 respondents across income groups found that respondents were primarily motivated in their housing choices by a desire to house visiting family members, a preference that is expected to have wide effect in the secondary and new-home markets.
