Boston real estate: I must be gettin old, I’m thinking about retirement
The past year and a half brought about significant life changes for many of us. For some, it meant entering retirement earlier than expected. Recent data shows more people retired this year than anticipated. According to the Schwartz Center for Economic Policy Analysis, 2021 saw a retirement boom:
“At least 1.7 million more older workers than expected retired due to the pandemic recession.”
If you’ve recently retired, your home may not fit your new lifestyle. The good news is, you’ve likely built-up significant equity that can fuel your next move. According to the latest Homeowner Equity Insights report from CoreLogic, homeowners gained more than $50,000 in equity over the past 12 months alone. That, plus today’s sellers’ market, presents a great opportunity to sell your house and address your evolving needs.
You Can Move Closer to the Ones You Love
The 2021 Home Buyers and Sellers Generational Trends report from the National Association of Realtors (NAR) provides a look at the reasons people buy homes. For those reaching retirement age, the number one reason to buy is the opportunity to be closer to loved ones, friends, or relatives.
If you find yourself farther from your loved ones than you’d like to be, retirement and the equity you’ve built in your home may enable you to move closer to the people in your life who matter most.
You Can Find the Right Home for Your Needs
Not only can your equity power a move to a new location, but it can also help you purchase the right size home. Lawrence Yun, Chief Economist at NAR, says many homebuyers 55 and older choose to downsize – or buy a smaller home – when they make a purchase:
“Clearly from the age patterns, young people want to upsize, and the older generation is looking to downsize. . . .”
Whatever your home goals are, a trusted real estate advisor can help you to find the best option for your situation. They’ll help you sell your current home and guide you as you buy your next one while you move into this new phase of life.
If you’ve recently retired and your needs are changing, you’re not alone. Let’s connect so you can get a better sense of how to find a home that will match your situation.
Boston has been named one of the best places to retire by U.S. News & World Report.
The 2021 U.S. News & World Report Best Places to Retire list analyzed 150 of the country’s largest metros to determine how well they meet both retirement needs and expectations. Boston ranked No. 43 in the rankings which also stated the city “often feels like a small town with all the perks of city life.” Sarasota, Fla. ranked No. 1 on the list.
Beantown received an overall score of 6.9 out of 10. Its desirability ranking was 7.8. The city ranked 5.6 for value, 7.9 for its job market, 7.1 for quality of life and 6.2 for net migration.
Boston wasn’t the only Massachusetts town on the 2021 list. Both Worcester and Springfield also made the rankings.
Worcester took the No. 35 spot with an overall score of 6.5. It was rated 5.6 for desirability, 6.5 for value, 6.7 for its job market, 7.1 for quality of life and 6.1 for net migration.
Springfield was ranked 31st and had an overall score of 6.2. It was rated 6.1 for desirability, 5.7 for value, 6.3 for its job market, 7 for quality of life and 5.7 for net migration.
Just an hour north of Boston, Manchester, NH also made the list ranking No. 24. It had an overall ranking of 6.6 and was rated 5.8 for desirability, 6.3 for value, 7.3 for its job market, 7.1 for quality of life and 6.2 for net migration.
Top criteria in this year’s Best Place to Retire list included the happiness of residents, housing affordability, tax rates and quality of health care.
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Boston real estate: I must be gettin old, I’m thinking about retirement
The other day, I was asked: ” When and Where do you think you will retire?” Based on that question I thought I would look up where are the best places to retire. I was also curious where Boston ranked because as of today’s date I have no intention of leaving Massachusetts.
It’s hard to believe that we got smoked by Cleveland, Buffalo, and Detroit, but our housing cost is a barrier. They have many reviews of each city, and for those who take politics into the decision-making process, these links include the voting history in the last five presidential elections (including 2020):
- Seattle, Washington
- Minneapolis-St. Paul, Minnesota
- Denver, Colorado
- Portland, Oregon
- Hartford, Connecticut
- Omaha, Nebraska
- Baltimore, Maryland
- Pittsburgh, Pennsylvania
- Cleveland, Ohio
- Salt Lake City, Utah
- Warren, Michigan
- Newark, New Jersey
- Richmond, Virginia
- Milwaukee, Wisconsin
- Grand Rapids, Michigan
- Cincinnati, Ohio
- Kansas City, Missouri
- Tampa-St. Petersburg, Florida
- Chicago, Illinois
- Providence, Rhode Island
- St. Louis, Missouri
- Tucson, Arizona
- Buffalo, New York
- Columbus, Ohio
- Atlanta, Georgia
- Indianapolis, Indiana
- Austin, Texas
- Dallas, Texas
- Fort Lauderdale, Florida
- Raleigh, North Carolina
- Sacramento, California
- Oklahoma City, Oklahoma
- New Orleans, Louisiana
- Louisville, Kentucky
- Orlando, Florida
- Nashville, Tennessee
- Philadelphia, Pennsylvania
- Miami, Florida
- Fort Worth-Arlington, Texas
- Phoenix, Arizona
- San Antonio, Texas
- Virginia Beach, Virginia
- Charlotte, North Carolina
- Houston, Texas
- Detroit, Michigan
- Las Vegas, Nevada
- Riverside, California
- Memphis, Tennessee
- Nassau County-Suffolk County, New York
- San Francisco, California
- Silver Spring-Frederick-Rockville, Maryland
- Boston, Massachusetts
- San Jose, California
- Washington, DC–Arlington, Virginia
- Anaheim, California
- Oakland, California
- San Diego, California
- Honolulu, Hawaii
- New York, New York
- Los Angeles, California
Every day in the U.S., roughly 10,000 people turn 65. 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 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 beach bungalow you’ve always dreamed of or that Boston high rise condo with spectacular Boston Common views. 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.
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 and 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 downtown Boston real estate market.