A recent survey among retirees and pre-retirees in the US finds that the baby boomer generation is a force to be reckoned with. It also pinpoints Florida as a preferred retirement destination. These conclusions underline the investment potential in properties in Florida catering for this sector of the population.
The Home in Retirement. More Freedom, New Choices study carried out by Merrill Lynch and Age Wave reveals that the baby boomer generation will account for 10.7 million new households over the next ten years. This generation made up of Americans born between 1949 and 1964 is huge and living longer, two factors that account for the giant leap in the number of households.
The study examined homeownership, home equity and retirement location preference among this generation. The vast majority of the over 65s are homeowners (four out of every five) and most are equity rich. The survey found that the average home equity among this group is over US$200,000, meaning they make up 40 per cent of all US property equity.
In terms of preferred retirement location, the study reveals that the South Atlantic region (including Florida) leads the nation in all fields. It features as the top ranking destination among those who are already retired. For pre-retirees, the region also wins hands down – 80 per cent of pre-retirees already living here say they plan to stay in the South Atlantic once they reach retirement. Of those who plan to move when they retire, four out of every ten say the South Atlantic will be their number one choice of location.
Florida is renowned for its year-round good weather and climate is one of the main reasons why retirees choose the South Atlantic. In the survey, 68 per cent of South Atlantic retirees claim they are satisfied with the weather compared to just 48 per cent nationally. The affordable cost of living in this part of America also ranks well among retirees with a 63 per cent level of satisfaction (46 per cent in the US as a whole).
The Merrill Lynch study corroborates the RealtyTrac First Quarter 2015 Residential Rental Market Report, which highlighted the demand for rental property among the baby boomer generation. Two locations in Florida with property offering the best potential were Charlotte County and Sarasota on the Gulf of Mexico coast.
Source: Merril Lynch