Another Housing Boom in South Florida As Peak of Baby Boomers Retire (Fort Lauderdale: spring break, for sale)

[Rumann Koch]

In the next two years the Baby Boomer Generation (born between 1946 and 1964) will be peaking as Boomers reach age 65.

I know I’ve read that Retirees usually move to a smaller home, but I believe that we will see Boomers bucking that trend here in South Florida.

Here’s why:

• Boomers are healthier than previous older generations, and therefore able to work and take care of their homes
• Boomers have more stuff and need larger homes
• Hurricanes have been hitting more northern areas than Florida in recent years
• South Florida has the only tropical climate in the United States
• South Florida has more year-round activities than almost any other place in America
• South Florida has no air or water pollution due to industry
• South Florida has the world’s two largest cruise line ports
• Florida has no state income tax
• Fort Lauderdale is no longer the Spring Break mecca , and instead has changed to an upscale clientele
• Interest rates are still at relatively record lows
• Generation Y’ers in other parts of the country who are starting families will be looking for larger homes and will want to buy the family homes Boomers are leaving to move to South Florida
• South Florida has limited areas for building due to the Atlantic Ocean to the East and the Everglades to the West
• Millennials do not seem interested in buying homes, and are less able due to high student debt and less mortgage loan availability
• Boomers already retired and living in South Florida believe it unwise to sell their home, especially if is paid off or has substantial equity. This limits the supply of houses available for sale and drives up available home prices
• Boomers will want larger homes to make room for visiting children and grandchildren, and for mother-in-law suites to accommodate aging relatives that also are living longer

Now that the economy has dramatically recovered from The Great Recession and 401 accounts are at all-time highs, Boomers are ready to dip into their accounts and put their retirement plans into action. Boomers control 70% of disposable income in the United States, and will likely look forward to spending a larger portion of that income in their retirement on travel, leisure, and cultural activities – all abundant in South Florida.

And unlike California, Boomers do not want to leave Florida.

Another major boom to the US economy as a result of this South Florida Boomer Boom will be the remodeling by younger buyers who will want to upgrade and update the older homes sold to them by the Boomers leaving for South Florida.

What do you think?

[blueherons]

There is a lot of bunk in your over generalizations about Florida that I'm not even going to bother to address, however I will say as a realtor, I'm having a great year!

[independent man]

Mostly true. I might take exception to the trend to larger houses by Boomers. Think still the opposite. Small, one floor.

[Rumann Koch]

Originally Posted by blueherons

There is a lot of bunk in your over generalizations about Florida that I'm not even going to bother to address, however I will say as a realtor, I'm having a great year!

So you respond only to trash my post and boast about your own fortune? Why did you even bother?

And you're a realtor in South Florida!?

[Rumann Koch]

Originally Posted by independent man

Mostly true. I might take exception to the trend to larger houses by Boomers. Think still the opposite. Small, one floor.

Where do you see 'small, one-floor' new homes being built in Fort Lauderdale?

I live between Commercial Blvd and Oakland Park, and I have seen nothing but very large homes being built. For example: they finally 'filled the gap' along the Coral Ridge Country Club off US-1 behind Baer's Furniture with massive homes. Same goes for every construction or reconstruction along the Bay View Drive 'corridor' and A1A. I see smaller older homes being either added on to, or completely demolished and replaced with a new, larger home.

Like I said, I think Boomers may buck the trend.

Originally Posted by Rumann Koch

Here’s why:

• Boomers are healthier than previous older generations, and therefore able to work and take care of their homes
• Boomers have more stuff and need larger homes
• Boomers will want larger homes to make room for visiting children and grandchildren, and for mother-in-law suites to accommodate aging relatives that also are living longer

[independent man]

Originally Posted by Rumann Koch

Where do you see 'small, one-floor' new homes being built in Fort Lauderdale?

Regarding new construction, smaller houses are rarely built - anywhere - when more profit can be made with McMansions. Boomer Buyers seeking small will have to buy existing and upgrade, or go condo. Which is what I suspect they're doing. Plenty to choose from here.

[Rumann Koch]

Originally Posted by independent man

Regarding new construction, smaller houses are rarely built - anywhere - when more profit can be made with McMansions. Boomer Buyers seeking small will have to buy existing and upgrade, or go condo. Which is what I suspect they're doing. Plenty to choose from here.

I agree with you.

When I made my OP I was thinking houses (housing boom) not condos or apartments. I haven't lived in a multi-family residence since college!

Yes, there will always be retirees that will seek out smaller less expensive homes, but those retirees will probably not be able to find something here in Fort Lauderdale. And right now there are lots of retirees that are in the best financial position of their entire lives.

[independent man]

Originally Posted by Rumann Koch

I agree with you.

When I made my OP I was thinking houses (housing boom) not condos or apartments. I haven't lived in a multi-family residence since college! Yes, there will always be retirees that will seek out smaller less expensive homes, but those retirees will probably not be able to find something here in Fort Lauderdale. And right now there are lots of retirees that are in the best financial position of their entire lives.

Really not thinking about small because of less expensive, thinking small because of a preference for small & easy. Not what they left in the north. Plenty to offer in the Ft. Lauderdale metro area. As for retiree financial positions now, you're absolutely right. Stock market.

[Rumann Koch]

Originally Posted by independent man

Really not thinking about small because of less expensive, thinking small because of a preference for small & easy. Not what they left in the north. Plenty to offer in the Ft. Lauderdale metro area. As for retiree financial positions now, you're absolutely right. Stock market.

The iron's hot right now, and that's why I began my OP:

Originally Posted by Rumann Koch

In the next two years

[NickyDevdLots]

Originally Posted by independent man

Regarding new construction, smaller houses are rarely built - anywhere - when more profit can be made with McMansions. Boomer Buyers seeking small will have to buy existing and upgrade, or go condo. Which is what I suspect they're doing. Plenty to choose from here.

When I saw this comment, I just had to register an account.

This is very wrong in every way. Smaller houses are CONSTANTLY being built EVERYWHERE, and LESS profit is made from McMansions*. I don't know if you just woke up from a coma since 2006, but these low-density planned neighborhoods are a thing of the past in the established cities of Southeast FL. Sure, there are some "large" units being built on the ever-expanding fringe of development (for example, Parkland, Homestead, etc.) and also in those select few cities in which it's practically forbidden to build on anything smaller than a 70' wide lot (e.g. Davie).

* = you have to consider profit per acre for developers and builders. They have LAND, not single lots where bigger is obviously better. Small and dense is always more profitable... more so than ever before right now thanks to ridiculous construction costs (residual effects of last year's tariffs), municipality-imposed fees (>$20k), and the unbelievably expensive price of land in Southeast FL.

Source: Me, anonymous hotshot SE FL single-family resi developer who religiously reads this forum to know what land is worth buying / desirable.