Who is buying?

With nearly 78 million boomers in the U.S coasting towards retirement age- this group is making a mark on real estate sales figures- Boomers are buying high-end condominiums, attracted not only by the interest rates but also by the fact that they have longer life expectancies, a more active lifestyle than past generations and they have accumulated significant wealth.

The demand for urban-style luxury living is the predominant driving force in the condo market. Baby boomers and empty nesters- the 50-60 something age group who like the urban lifestyle, are clamoring for purchase opportunities in downtown locations where they can enjoy upscale restaurants, theater and shopping just outside their front doors. Nationwide, this group is looking for maintenance-free living, moving out of their large suburban homes and making a lifestyle change.

Luxury condominiums in downtown locations, in water and golf communities or in adult communities are all trends fueled by baby boomers. Forecasters are predicting this downsizing trend will continue to increase from 2005 to 2009- as baby boomers reach their peak buying age, and from 2016 to 2024 as the number of people over age 60 increases considerably. Between these periods, from roughly 2010 to 2015, a small number of people will reach peak buying age, and demand will be lower.

Another influence in this condo market is the “yuppie” – Condos are not just for the aging portion of the population anymore. Young and upwardly mobile people see condos as a great way to start their lives in real estate ownership because it often requires less financial resources and a less demanding time commitment. Such entrepreneurial people can devote more of their time and energy to their careers and building a nest egg for the future, rather than the day to day details that can come with owning a home.