Millennials Baby Boomers & the Economy

[Sally Fairchild]

With Millennials having trouble buying homes because of student debt and Baby Boomers unprepared financially for retirement, how is that going to effect the real estate investing market?

[Daniel Haberkost]

@Sally Fairchild

This is a great question and I won't comment on the millennial trends but I can definitely add some insight into what some of the baby boomers are doing (here in CO at least). I work with several builders/investors who live in Pueblo West, CO. Pueblo West is extremely affordable relative to the rest of Colorado (Denver, Boulder, CO Springs have all become very pricey in recent years) and the number 1 client who buys my builders' homes are under-saved baby boomers coming from expensive markets looking for an affordable (and warm) place to retire. Baby boomers from California (we get more from CA then anywhere else), Denver, and other expensive areas all over the west coast are selling their homes and coming to Pueblo West where they can buy a house for 1/2 or 1/3 the cost of their old home and retire more comfortably. 

What's happening in Pueblo West is indicative of what is happening all throughout the state. Under-saved baby boomers are leaving the expensive cities and moving to the more affordable rural towns (as long as there is access to healthcare) where they can retire very cheaply. Canon City, Florence and Pueblo West are just a few of the cities here that are drawing many baby boomers from around the country because they are affordable, have access to healthcare, and have a very dry/sunny/mild climate. 

I would imagine that similar trends are taking place all over the country in that the under-saved baby boomers are moving to rural climates in warm areas where they can live cheaply and have access to affordable healthcare. I have a financial adviser friend who has been in the business 30+ years here in CO Springs and his main client base is baby boomers. He was just telling me that many of his clients are doing exactly what I just described, selling their homes in the city and moving to much cheaper rural areas to retire. 

I'm from OH and my parents and many of their friends are under-saved baby boomers moving into retirement. I'm seeing the same trends with them as well. 

-Dan