While the national economy has been sluggish in its recovery after the Great Recession, the housing market has been particularly robust over the past several months, with sales in almost all major metropolitan areas showing significant increases year-over-year. A slew of recent reports have indicated that one demographic in particular has helped the most in fueling this rebound.
Baby Boomers – the name given to the generation born between 1946 and 1965 – are fast turning toward retirement, and one study conducted by senior citizen advocacy group AARP has found that a large portion of these individuals intend to purchase new properties once they enter their golden years. More importantly, these buyers are interested in new home construction, as this generation has more expendable income than any other demographic.
Because Baby Boomers account for roughly a quarter of all Americans, this means that new home construction is going to need to amp up over the next several years if supply is going to keep pace with demand. Figures from the National Association of Home Builders have indicated that this is fortunately the case, as the number of building jobs in most major markets has also trended upward and there are now more units entering the national market than there have been in years.
If you are a Baby Boomer and are considering buying a new property, make sure you don't sign a sales contract before investing in a home inspection first. Even new houses have deficiencies and an inspection contractor can make sure you aren't entering an agreement that will only cost you more money in the long run.