Sunny retirement spots are still a big draw for baby boomers.
Baby boomers are the richest generation of Americans still alive today, and while some may no longer be in the real estate market, many are still looking for homes.
But where do baby boomers want to buy? To answer this question, LendingTree analyzed mortgage purchase inquiries made on the LendingTree platform in the country’s 50 largest metropolitan areas in 2020. The study found that:
- Las Vegas, Tampa, and Phoenix are the metros where baby boomers have the largest share of mortgages Purchase inquiries. In Las Vegas, 19.97% of purchase requests came from Baby Boomers. In Tampa and Phoenix, the numbers are 17.33% and 16.36%, respectively.
- Minneapolis, San Francisco and San Jose, California have the lowest percentage of Baby Boomer buyers.
- In all 50 of the country’s largest metropolitan areas, the average creditworthiness of Baby Boomer home buyers was 683.
- Baby Boomers applied for the largest loan amounts in major California cities like San Jose, San Francisco and Los Angeles.
The largest down payments were made in the metropolitan areas where the largest mortgage loan applications were made. For example, in San Jose, the average down payment among Baby Boomers was $ 128,194, more than double the average down payment in all of the 50 largest metropolitan areas in the country, $ 52,102.
According to Tendayi Kapfidze, LendingTree’s chief economist, other factors, such as whether an area is a good place for retirement or the cost of living, are likely to play a bigger role in migration patterns.
“On the one hand, being able to work remotely makes it easier for people to move to parts of the country like Las Vegas, where the local job market has been hit hard by the Covid-19 pandemic,” he says. “On the flip side, many baby boomers are retired so they are unlikely to include employment opportunities in their moving deliberations.”
Although many employees switched to remote working during the pandemic, there is little certainty that they will be able to continue working from home after the country is fully reopened.
“As a result, a lot of people are probably waiting to see if they have to return to the office before moving to another city,” says Kapfidze.
Other factors, such as whether an area would be a good place to retire to or the cost of living, are likely to play a bigger role in boomer migration patterns.
Also, when making some moving decisions, it is important not to have to deal with a lot of home maintenance such as frozen pipes, roof replacement, or drafty windows.
“Homes that don’t require a lot of maintenance, like condos or houses with no grassy yards, are common in popular baby boomer areas like Las Vegas and Tampa,” explains Kapfidze that while there are some exceptions, such as when there are If there are In general, when there is a hurricane or flood, homes in these areas require less maintenance than many other parts of the country, especially those with severe winters.
He pointed out, “Places like Florida and Arizona have always been popular retirement destinations, so it makes sense that they should be popular areas for baby boomers as they age.”
“Even if they’re not currently retired, these subways are usually a good place for older homeowners who may not need to move in the future because they have a generally comfortable climate and don’t have a super high cost of living,” says Kapfidze.