As the number of retired Baby Boomers increases each day, they continue to have an effect on certain housing markets, according to the most recent Home Data Index (HDI) from Clear Capital.
Nationally, the quarterly market performance remains at 0.6%, which is no change from last month, according to the HDI.
On a regional basis, the West is dominating the quarterly growth with a quarter-over-quarter price increase of 1.1%, and the growth rates in the south remain unchanged at 0.7%. The Northeast and Midwest continue to lag behind the rest of the country at 0.1% quarter-over-quarter growth each.
Housing price trends continue to rise in the areas that are most popular for Baby Boomers, according to the Clear Capital analysis.
The highest performing major metro markets for June are Seattle and Tampa, with each showing a price increase of 2%. Florida, as a whole, is showing impressive growth, with gains in Orlando, which saw an increase of 0.2% from last month, Jacksonville, which increased by 0.3% and Miami, which reported a 1.4% quarterly price growth.
“Florida has traditionally been regarded as prime real estate by those retirees who may be looking to migrate from colder areas of the nation such as the Northeast to a warmer and sunnier alternative for their golden years,” said Alex Villacorta, vice president of research and analytics at Clear Capital.
There is a larger pattern of growth being seen for Florida considering that each of these areas have turned around after 2011 market lows. Each area has seen at least a 30% market value increase.
Homes in Jacksonville and Orlando have seen an increase of 33% and 44%, respectively since 2011, and homes in Tampa and Miami have shot up by almost 56% and 57% over the same time period.
“The Baby Boomer share of homeowners is clearly on the rise here, as as more and more of this generation nears retirement age, Florida markets may be in for a boost in performance if tradition continues and retirees demand homes in the region,” Villacorta said.
Written by Alana Stramowski