Understanding "Peak 65" and its impact on the Baby Boomer Generation

Beginning this year, the baby boomers (often defined as born between 1946 and 1964) will reach “Peak 65.” This is the beginning of a period that will see the largest numbers of the cohort turn age 65. Nearly 12,000/day (4 million+/year) will turn 65 from 2024-2027**.

From changing demand for certain types of housing to influencing market trends and prices across different regions of the country, the aging of the baby boomer generation continues to have a profound impact on the real estate sector.

Here are a few real estate impacts I'll call out:

1️⃣ Increased demand for 55+ active adult communities, and those communities focused on a positive lifestyle. Build, build, build! Homebuilders and developers focused on the 55+ market will see increased traffic and transactions.

2️⃣ Increased inventory with baby boomers selling existing homes (regardless of interest rates) due to the amount of wealth/cash sitting with those homes - potentially stabilizing or lowering home prices.

3️⃣ Shifts in geographic preferences. Many active adults look to relocate to areas with warmer climates, lower costs of living, and favorable tax conditions.

**source: www.protectedincome.org/peak65