How Coronavirus is Changing Real Estate for Boomers and Millennials
November 30, 2020
4 MINUTE READ
Of course, the real estate industry was not exempt from the wave of change initiated by this year’s pandemic – and if you’ve been keeping up with the Reali Blog, you know that California’s market is adjusting to the post-COVID housing market.
In light of the unprecedented circumstances, it should come as no surprise that this year was the disruptor of the decade. The normals trends, trajectories, and rhythms were suddenly turned upside down – and now that we’re on the other side of the crisis, we’re finally able to analyze and anticipate the newest changes.
Rethinking Retirement is Impacting Real Estate
After surveying the current state of affairs, one of the biggest changes we’re seeing is how COVID is changing retirement plans. In fact, these new retirement concerns are reshaping the way that we approach the real estate market.
These new future-proofing motivators are gaining traction across all generations. Whether you’re a Gen Z first-time buyer, a Millennial, or a long-time Boomer homeowner, the pandemic is changing the way everyone thinks about the future. As a result of this new perspective, people are adjusting the way they navigate the real estate market today.
Understanding this new concern is imperative for grasping what’s happening in the housing market right now – and what’s to come. Here’s what we’ve been observing so far:
Revised Retirement Plans for Baby Boomers
Members of the 55+ demographic are no strangers to thinking about retirement. Planning for retirement is an immediate concern for Baby Boomers.
After dealing with the uncertainty of the pandemic, planning for the future is top of mind for homeowners approaching retirement age. But, for many people, those lifelong plans have drastically changed over the past few months.
Ideally, retirement is the best time of your life – the unparalleled golden years where all that hard work pays off.
However, the pandemic has changed the way that people envision their perfect future, with real estate concerns coming to the forefront. Since COVID, Baby Boomers are trading the crowded bustling city lifestyle for large, sprawling suburban family-style homes.
Some Boomers decided to err on the side of caution and stay put in their homes, others quickly sold their houses when the pandemic began to intensify back in March, and some even dove headfirst into early retirement.
While each situation is unique, it’s clear that Boomers are stepping outside of the box to adapt to COVID’s lasting new normals.
What Are Millennials Up To?
Before the pandemic, there was endless discussion regarding our largest generation… but, what are our Millennials up to right now?
The pandemic came at a tough time for Millennials – many of whom were forced to choose between two important necessities: buying a home or saving for retirement.
Unfortunately, the pandemic’s financial stressors made it difficult for Millennials to stay afloat. Simply dealing with the crisis was economically challenging, and many dipped into their retirement savings or took out loans to cope during the worst of it.
Deciding to invest in a home rather than a retirement fund is becoming the Millennial response to COVID.
Millennials are starting to think about real estate as a part of their ultimate retirement plans. For most, a home is the largest and most valuable asset acquired in an entire lifetime. The opportunity to build up equity over time is being capitalized on by Millennials as they choose to invest in real estate rather than cash savings.
As we approach the new year, the housing market’s forecast remains cloaked in uncertainty. Fortunately, the details are slowly becoming more clear – allowing us to make predictions and curate best-practices for moving forward.
One thing that’s true for all people is the need to start planning for the future. A defensive real estate strategy can help future-proof the lives of you and your family, helping to cultivate resilience no matter what comes your way.
For people across all generations, the pandemic has spurred some big changes to the way that we approach the real estate market. In the face of rapidly changing times, be sure that you’re thinking ahead – so your actions today continue benefiting you tomorrow.
Leveraging real estate should be a key piece of your retirement strategies, ultimately affecting the way you’re navigating today’s market.
Want to discuss your specific circumstances? We’re here to help you meet your goals. Reach out to the Reali team to start shaping your ultimate real estate strategy. Cheers!