As real estate markets transcend with new advanced technology and mandated building code adoption, two demographic markets could drive major shifts in real estate for smaller square footage homes.
Baby Boomers
As of 2016 there were over 74 million baby boomers in the united states. At least a quarter percent of Americans are now reaching retirement age, requiring developers to re-examine their approach to serving this market. Many baby boomers are facing sobering realities and realigning their property ownership needs.
Financial challenges due to increased property taxes, often as much as $2000 a month for higher property values in certain regions are forcing some retirees to sell their homes. Larger, dated homes also encounter increased maintenance costs and utility operating costs; which many retired homeowners find financially unsustainable due to fixed incomes and savings depletion.
Millennials
According to various population studies millennials now make up between 81- 79.8 million or over 27 percent of the U.S. population. This generation of 18 to 34-year-old adults now represents the largest sector of the population. But, studies are finding that Millennials are not adopting traditional modes of living as earlier generations, especially with decision making for home and car purchases.
Millennials are living with their parents longer, saddled with student loan debt and many can’t afford to purchase in desirable high cost regions. High-cost real estate markets like California where the median home price is as high as $750,000, makes it impossible to afford or qualify for financing.
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