AGING IN PLACE – Should You Buy a Retirement Home Sooner Rather than Later?

THE NUMBERS
Every day in the U.S., roughly 10,000 people turn 65. Twenty years ago, there were just over 35 million Americans aged 65 or older. By 2030, according to the US Census Board, there will be about 70 million American aged 65 or older — that’s almost 20% of the total US population.

According to a survey by AARP, nearly 90% of people over 65 want to age in place. 80% believe their current residence is where they will always live.

WHAT IS AGING IN PLACE?
Aging in Place means a person makes a decision to stay in the habitation of their choice for as long as thy can with the comforts that are important to them.

Aging in Place has grown into a national movement aimed at enabling older adults to remain in their own homes by making available the social, health and home maintenance services that people need to live safe, happy, productive lives. Aging in Place represents a philosophical shift which includes a vision of healthy aging — a new attitude regarding the needs of people in their 70s, 80s and 90s.

Keep in mind that aging in place doesn’t have to mean staying where you are if your house isn’t suitable. Aging in place isn’t about refusing to move — it’s about making mindful choices about what locale and type of housing would work best for you.

SHOULD I MOVE BEFORE I RETIRE?
Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed.

Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make:

should I move before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that bungalow you’ve always dreamed of, the single-story home that’s easier to live in and maintain, or the condo that provides carefree living. Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to round out a long and meaningful career.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”

According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by selling their current homes in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.

WHY HOMEOWNERS ARE MAKING THE MOVE NOW
The health crisis this year made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (see graph below):

The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting a historic low, and with the buyer demand for single-family homes skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.

If you’re one of the 73% of retirees with a single-family home who want to move closer to your family, now is the time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.

Whether you’re looking to fully retire or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor. Let’s connect today to discuss your options in our local market.

Peter G. Laughlin Group
941.356.8428 | PeterGLaughlin.com