Baby Boomer Retirees and Downsizing

[Anthony Joseph Kendall II]

I'm curious of your thoughts on the Baby Boomer Retirees rental market and smaller properties. I have considered getting into rental property that caters to this group even down to consideration of property layout etc. has anyone dabbled in this market or have considered it?

[Trevor Ewen]

@Anthony Joseph Kendall II

It's a great place to focus. I think it's perfect for the times. My estimation is there are three factors that will force downsize. I imagine you could do best catering/specializing in any one of these you felt most appealing:

1) Baby boomers who downsize to spend money on 'Other Things'

These are your well-prepared retirees who are letting go of the family home. Likely moving to a hipper area, or one that resonates more with their goals. They like experiences, and high class living. Imagine they are great for flips and higher end commercial units.

2) Baby boomers forced to financially downsize

In the near term, this is your largest market. Under-prepared and heading into retirement. These ones will be interested in better value for money. May not compromise on quality, but size is a huge variable they can play. I actually think this will attract tiny home and higher-end mobile home interest.

3) Baby boomers forced to physically downsize

Mobility and health changes force some to move to easier units. Ranch style, wider hallways, less yard work. Some negative aspects of home ownership are becoming tough for homeowners with limited mobility and changing health.

I have seen investors and developers make plans to focus on any of the three. Not a bad idea if you have a little time to sit on them.