February 27, 2013 2:46 am
The poll by Leger Marketing found that of the 40.6 percent of baby boomers (born between 1947 and 1966), who do have plans to move to another primary residence, almost half (43.5 percent) are looking to purchase another primary residence that is a similar size or larger than their current property. Of the total responses from baby boomers who intend to purchase their next primary residence, 66.8 percent said they will do so in the next five years.
Male baby boomers, who are planning to move, are more keen on upsizing their residence than women, with 23.0 percent reporting that they plan on moving to a larger residence compared to 12.1 percent of women. Baby boomers looking to purchase a condominium prefer less amenities and low maintenance fees (54.5 percent) over properties that have many amenities (39.1 percent). Seventy-eight percent of baby boomers currently own their own homes.
Contributing to the desire of baby boomers to continue to invest in large, suburban homes is the reality of housing children well into adulthood. According to the survey, a quarter of Generation Y lives rent free because of arrangements with family or friends.
The adult children of baby boomers aren't going anywhere fast. Good jobs have proven more difficult for them to find, they're extending their studies and they're living at home. It is no wonder the concept of swapping a family-sized home for a small retreat has lost its luster.
Meanwhile, members of Generation Y (those born between 1980 and 1994), who plan to purchase their next residence, are most interested in single-family multi-storey homes (50.6 percent) and bungalows (19.0 percent). Only 15.7 percent of Generation Y said they plan to buy a condominium or an apartment. In comparison, 22.9 percent of Baby Boomers looking to purchase their next residence desire condominiums or apartments.
The survey found that more than half of Generation Y planning to purchase their next residence, intend to purchase in the suburbs (55.7 percent) compared to the downtown core of a city (21.7 percent).
Forty-three percent of current non-owners who plan to purchase in the next five years say it is because they are planning to start a family in the near future. Among this younger demographic planning to purchase their next residence, the safety of a neighborhood and proximity to their work, family and friends are the most important attributes when selecting a new home. Keeping in mind that nearly half of Generation Y listed their near-term plans to have children of their own (42.0 percent) as a motivating factor to purchase; the least important factors are proximity to the downtown city core and restaurants or entertainment.
Among baby boomers who plan to downsize when they purchase their next residence, the most popular reasons are to reduce maintenance (73.7 percent), free up money for retirement (48.1 percent) and for travel (30.9 percent).
Source: Royal LePage
Published with permission from RISMedia.