Engel & Völkers Releases New Report on Baby Boomer Homebuyers

The global luxury real estate brand has identified five segments of baby boomer homebuyers that are driving the North American market 

Engel & Völkers released today an original Homebuyer Report distinguishing five segments of baby boomers driving the real estate market. Over the next 15 years, baby boomers will drive the largest wealth transfer in history, having a lasting impact on younger generations and their homebuying activity. Despite reaching retirement age, baby boomers are defying traditional norms by remaining more active, and often staying in the workforce while adapting their lifestyles. As a result, baby boomers are poised to influence the residential real estate market significantly for the foreseeable future. 


"Baby boomers are rewriting the playbook for luxury living after reaching retirement age, and seeking homes that reflect their active lifestyles, close family bonds, and love for adventure,” said Stuart Siegel, chief strategy officer, Engel & Völkers Americas. “Baby boomers will continue to be a significant force in the real estate market, whether it's multi-generational living, luxury resort-style communities, or expansive rural retreats. The value of homeownership, along with such historic levels of wealth transfer, will also greatly affect the positioning of younger generations in the housing market for many years to come.”


The five personas identified by Engel & Völkers within the baby boomers generation that are poised to drive the North American real estate market over the next decade are:


The Multigenerational Matriarch

The combination of grandparents having been apart from their children and grandchildren during the pandemic, and many millennials and Gen Zers needing to rely on their parents to help financially with a home purchase, has motivated homebuyers to purchase a home that accommodates multiple generations in their families. The matriarch has taken the lead in ensuring the family lives close together and that each child and grandchild has a home that fits their needs. 


Full Service Luxury Lifestyle Seekers

According to the American Seniors Housing Association (ASHA), 69% of potential baby boomer homebuyers included senior housing communities while searching for a home. But, senior living communities aren’t what they used to be. These baby boomers seek new, exclusive resort-style developments catering to active lifestyles, socialization, fine dining, and the full scope of luxury amenities at their fingertips. They’re willing to pay a premium to live out their later years doing what they love, such as playing golf, swimming, tennis and maintaining an active social life.


City Slickers Turned Big Sky Living

The trend of relocating away from crowded cities began for many baby boomers during the pandemic and has not slowed down. These individuals are moving away from homes in major cities and opting for properties in affluent, rural communities that support a more relaxed lifestyle in areas that offer local access to recreational activities such as skiing, hiking, and fishing. These residences typically feature expansive properties and large living spaces that accommodate home offices for those who continue to work and provide ample room to host family visits from their children and grandchildren. 


Downsizing Globetrotters

These globetrotting seniors are selling their family homes and purchasing smaller properties that serve as their main residences while they travel the world throughout the year. Although their new homes may have smaller footprints, they expect to have the same luxury amenities as their previous homes. While these wealthy baby boomers are looking to downsize their primary home, many in this group are also in the market to purchase vacation homes or even yachts they can use for months at a time while traveling the world. 


Coastal Grandmas (and Grandpas)

Not just an aesthetic trend on TikTok, this cohort of baby boomers refers to the grandmas (and grandpas) relocating from towns in middle America where they raised their families to be closer to their grandchildren growing up in wealthy coastal areas. This group of baby boomers is moving into smaller homes in more affluent cities that might have a higher price point than the family homes they previously owned. It’s important to this group that their new homes can still comfortably accommodate family gatherings of their children and grandchildren. Many of these grandparents are following their millennial children to locations that are vibrant tech and finance hubs.


To download the full report, visit www.evrealestate.com/generational-relevance.