Americans in the 55+ age group control $8 trillion of the nations home equity, which is almost two-thirds. And they’re feeling pretty good about their future retirement years in their homes.
Regardless of demographic, the majority of 55+ homeowners expect a financially comfortable retirement, according to the recent Freddie Mac 55+ Survey.
Strong links between homeownership and a person’s satisfaction with their home, financial situation and community may be why homeowners are feeling positive about retirement. Of those surveyed, 59% are “very satisfied” with their communities, 64% with their current home and 54% with their quality of life, the survey found.
Those surveyed found that 63% of 55+ homeowners also want to age in place if they had complete control over it, but nearly 40% say they prefer to move one more time.
“Whether the borrower is financing age-in-place renovations or buying a new house, even a relatively modest increase in lending to 55+ homeowners could add trillions of dollars in new originations in a relatively short time,” said Sean Beckett, VP and chief economist at Freddie Mac.
The cost and convenience were found to be the top factors that influence those surveyed whether to move and where to live and of those who do consider moving, 12% believe their next home will be more expensive than their current one and 37% believe it will be in the same price range.
Due to the high numbers of homeowners in the Baby Boomer generation, the 55+ age group has the power to reshape the country’s housing market. Of those surveyed, 94% believe that homeownership makes financial sense for people who are married with children or are between the ages of 35 and 49.
“One way or another, the Baby Boomers’ housing decisions over the next few years will take our market to brand-new places, said Beckett.”
Written by Alana Stramowski