The Baby Boom will continue to have a profound effect on every aspect of American life due to the massive population of the demographic – over 77M citizens fall into the group.
The shifting attitudes of the group will impact just about every business imaginable, will play a major role in how the real estate markets go, and perhaps will even cause a noticeable effect in where people choose to live.
Two studies have come out recently that take a look at this influential chunk of the population. Civano Living, Ypartnership and American LIVES have collaborated on a study that contends that as a group, Boomers are “rethinking their values” – and hanging in the balance will be the fates of a number of consumer categories, and many other areas of American life may need to brace for change. The authors start with the premise that the prolonged economic downturn and other ills facing the nation are causing the group to become more “introspective.”
"It is clear boomers have shifted from consumerism as status to meaningful relationship as a measurement of a purposeful life," said Kevin Kelly, CEO and founder of the Civano Development LLC. "This study unveiled that baby boomers feel vulnerable as significant events have emotionally affected their lives, due to aging, home equity and investments disappearing, and global competition. These values shifts have created a new consumer niche that can provide business opportunities for some."
The trio put the spotlight on a number of areas.
Consumer Goods and Services
* Attention shifting away from consumerism, materialism and conspicuous consumption and toward personal, more meaningful relationships
* Values driving purchase decisions on goods and services; therefore, boomers will gravitate toward companies that align with their values
* As boomers focus on relationship building they seek forums and platforms as catalysts for their self-directed efforts versus "how to" books and lectures
Travel, Tourism, Home, Builder and Real Estate
* Communities that foster social engagement and environmental consciousness have more appeal to boomers' values
* Vacation experiences that deepen relationships with family, friends and offer cultural venues are more desirable than recreational activities
* 80% want to feel healthier and more balanced at the end of a vacation, while the trend of Americans taken fewer vacation days and shorter trips continues
Health and Wellness
* Interest in health and fitness programs continues to grow
* Retirement brings a new age of personal exploration and socialization as 71 percent see retirement as a time to explore other cultures and travel
* Boomers see a connection between individual wellbeing and planetary health as societal issues such as air and water quality, healthier foods, less toxic building materials, renewable energy and conservation, among others, expand beyond personal pursuits
* 86% believe obesity as a national problem
Politics and Current Affairs
* Pessimistic view of current state of affairs reveals 70 percent are concerned the U.S. is slipping in its global leadership position
* Majority of boomers are not confident in America's future with 66 percent concerned about their children's future
* Boomers believe it is in our self interest to be energy independent
* A majority of working and retired boomers agree there are too many "have-nots" in our society today
LifeGoesStrong.com and the Associated Press collaborated on another study that looked at housing and living preferences of Baby Boomers as they transition from parents with live-in children to empty-nesters. One key finding of the study is that a wide majority, almost three out of four Boomers in fact, are far more likely to base decisions on where to live not on finding a hospitable retirement or older-person enclave, but rather on the proximity of the location to friends and family. The bottom line is that only 23% expect to move out of town for retirement purposes, and only 13% expect that move to include crossing a state line. However, that doesn’t mean the Boomers will be staying put – only 40% are looking to ride out their golden years in the same domicile in which they raised their family.
"It's easy to understand why mid-lifers are interested in being near family and staying close to home during retirement," said Barbara Corcoran, prominent real estate entrepreneur and newly appointed guest contributor to LifeGoesStrong.com.
"It's also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began. But whether or not someone was directly impacted, the recession makes all of us more aware of the importance and comfort of a close family circle, and the value of strong home roots."
The study found that wherever they go, and whether they buy or rent, many Boomers will be taking into account the proximity of medical care, shopping and other services.
Here are priorities of Boomers who expect to move:
* A smaller home (43%)
* An area with a different climate (30%)
* A more affordable home (25%)
* To be closer to family (15%)
* To be in a retirement community (12%)
Those that will be “fixing up the empty nest” have their own priorities – and of course many have already seen their children move out and have taken their priorities and acted upon them. Here’s a breakdown of plans for newly-emptied spaces:
* Guest bedrooms (58%)
* Home offices (39%)
* Craft rooms (28%)
* Entertainment rooms (15%)
"Given the recent housing market crunch, many boomers are recognizing they may be staying put in their current home into their retirement years," said Corcoran.
"Clearly, they're already thinking about how to make the best possible use of the space they have. The responses in this poll show that most 'empty nest' remodeling corresponds to a natural shift in life stages and the priorities that change as our lives do."
Source: Radio Business Today