Marketing High-End Real Estate to Baby Boomers

« « Real Estate Investing For Beginners | Purchase Property in Alabama » »

Tuesday, August 12th, 2008 Subscribe To Our Feed

A “Baby Boomer” is anyone born between the years 1945 and 1965, and this slang term is referring to the spike in birth rates that many North American and European countries experienced after the end of World War II – a baby boom, as it were. The Baby Boomer generation is one of the most populous in all of history, at least for most developed nations, including the United States.

This demographic means that Baby Boomers are now heading toward retirement, and all the typical circumstances and fields surrounding and affected by retirees – claims on Social Security, health care, and real estate – will see a sharp spike as well.

Baby Boomers in the United States are used to a certain lifestyle unlike any previous generations. Many were raised in homes by parents who had lived through the Great Depression of 1929, meaning that they went without many luxuries as children, and don’t care to relive that experience if at all possible. Additionally, many have built their nest egg and financial portfolio due to gains in the stock market and other investments, and so are able to have afforded a more luxurious lifestyle.

It’s also true that this generation will probably have one of the longest life expectancies ever, as even those that are already retired are living well into their 80s and 90s, many even hitting the 100 mark. Because of advances in health care, many elderly are refusing to – and do not need to – live in so-called “old folk’s homes,” and instead are opting for luxurious, resort-style retirement living.

All of this means a great deal to any real estate investor or developer. Realizing the untapped potential of this niche market, and how lucrative it can be, can mean great dividends.

However, there are some words of caution that are needed when talking about marketing high-end real estate to Baby Boomers. As with virtually every generation that came before us, each one has their own particular needs, likes and dislikes, and even their own lingo. While someone from Generation X – those born between 1965 and 1975 – may also be shopping the appeal of high-end luxury living, their specifics needs and preferences can be quite different. Yes, both need a roof over their heads, but this is like saying they both need food, so everyone will eat the same. It’s extremely shortsighted for a real estate marketer to misunderstand this point.

So how do you market high-end real estate to a Baby Boomer? The key obviously is to consider their needs when it comes to a home.

Baby Boomers are some of the most active retirees to date. While they may want an apartment or condo that offers them less need for maintenance or yard work, they also still want social contacts and activities – and we’re talking well beyond a weekly bridge game. Many of today’s retirees are still physically active and regularly participate in a variety of sports, so pointing out any home’s location to a nearby community center or nature center with hiking trails may be important. Many retirement communities that are on the high-end are sure to offer fitness rooms, saunas, exercise classes, yoga, a pool, and so on – and these amenities are reportedly used on a regular basis by their residents.

Marketing a neighborhood to a younger crowd often means referring to it as “up and coming,” as the younger crowd sees themselves as just that. However, for retirees, they’re no longer “up and coming,” they’ve already arrived. A Gen-Xer may see himself or herself as purchasing a property for investment purposes, fully intending to sell it at sometime down the road, but retirees have already bought and sold their investment home and are now looking for something that will appeal to them for the long-term. Simply telling them what the property will be worth five or ten years from now may have little meaning to them.

Many retirees, as we’ve said, still keep active in their own particular interests and want property that will reflect and accommodate. For example, many upscale condo or apartment communities located on the waterfront have marina slips either on the property or nearby. Retirees enjoy their boating and yachts as much as the next “skipper,” so this is an amenity that should not be overlooked.

Those that are retired may spend much time in their home, whether it’s just relaxing or pursuing their hobbies. Homes with a view are big sellers for retirees, whether it’s a city skyline or an oceanfront. If you’re a developer, never underestimate the value of large windows on any home.

The days of tiny and cramped apartments for retirees are long gone. Many have acquired a lifetime of possessions and have no interest in parting with them after retirement. So don’t confuse a property that has easy maintenance with one that lacks proper storage. Anything that emphasizes space is going to be important to Boomers, even when shopping for apartments and downsizing from their family home.

Some Boomers have a fraternity/sorority mentality that has been encouraged through their career and lifestyle, and apartments in long-established co-ops have wonderful “snob appeal” for these. Customers and clients that are in professions that encourage this, such as doctors, lawyers, architects, engineers, politicians, and so on, are going to look for some type of exclusivity in their home and neighbors.

And of course, the real estate market’s magic word, “location,” is still important. Baby Boomers in the high-end real estate market may not be looking for nightclubs and such hotspots, but have probably become accustomed to fine dining, shopping, golfing, concerts, and the like. Any home that is without this in the surrounding area is going to find it has a lot less appeal to the Boomer that has arrived and is looking to maintain their luxurious lifestyle.

So again, it’s the wise real estate investor or developer that understands this unique niche and works within these bounds. There may be a real estate bust in some locations and markets, but for those who are stepping into the shoes of a retiree, it can definitely offer a “boom.”

Like this post? Publish It On Your Own Blog

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.