Baby Boomers are a key element of Houston luxury real estate. Not only do they represent the second-largest generation in the U.S. (recently surpassed by Millennials) but they hold the lion’s share of personal wealth. Boomers control nearly 80% of the nation’s personal financial assets, and account for more than half of all consumer spending.
As of 2010, Texas was home to 3.8 million people aged 60 and older. According to the American Society on Aging, the number of adults aged 60 and older living in Houston grew by 34.2% from 2002 to 2009. Adults over the age of 60 are among the fastest-growing populations in Texas!
For this reason, real estate economists have attempted to predict the direction of the Boomer generation for years. Studies by the National Association of Home Builders suggest that Boomers prefer to live in single-family homes, located in subdivisions with shopping, dining and medical services nearby. This description brings to mind Houston’s Memorial and Energy Corridor neighborhoods, as well as The Woodlands and several other communities.
But will Boomers sell their luxury homes as they retire? Perhaps not. It has often been said that Boomers intend to age-in-place, and will retrofit their homes to accommodate changing needs.
Still, we often hear that Baby Boomers are likely to sell their homes and move to maintenance-free condominiums in urban centers. In some cases, this is already happening, with condominiums in downtown Houston attracting both Boomers and Millennial buyers. Yet this activity represents a relatively small portion of the Houston Boomer population, and falls well short of a mass exodus.
There is no one-size-fits-all answer for what Boomers will do. Like all other home buyers and sellers, Boomers will base their personal real estate decisions on their lifestyle and personal priorities. We can reasonably expect that Boomers will influence segments of Houston luxury real estate, and that generally, the impact will be positive.
Houston offers abundant luxury living, world-class cultural opportunities, and a diverse economy. Houston also has some of the best hospitals in Texas and in the country, as reported by the Houston Business Journal. The resilience of Houston’s luxury real estate market may rest on its ability to attract affluent residents from around the country and the globe!
Relocating, downsizing or trading up? Let us be your guide to Houston luxury real estate! Contact us today for your personal consultation.
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079