Urban vs. Migration notably accelerated, particularly during the pandemic years of 2020-2022.
While not moving in the droves seen in pre-recession generations, Arkansas registered meaningful gains in Boomer residents.
Urban vs. Over half of Arkansans over 65 live in rural areas one of the highest such shares in the nation.
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Many rural counties in the Ozarks and other scenic areas have long attracted retirees.
These areas continued to age as Boomers either stayed or moved in.
During 20082017, many Boomers hunkered down.
Only 15% expected to sell within five years.
This stay put mentality has been consistent across both 20082017 and 20182023, contributing to lower housing turnover.
Downsizing was relatively uncommon right after 2008 because selling at a loss was unattractive.
But as home prices recovered in the mid-2010s, more Boomers could sell at a profit and downsize.
Nationally, about 21% of Boomers said they wanted a smaller house for retirement in a 2014 survey.
The primary reasons were to reduce maintenance work and costs, and to cash out equity.
In Arkansas 20182023, downsizing became evident among Boomers who did move.
These were often empty nesters shedding extra space once children were gone.
Especially in suburban/urban areas like Little Rock or Bentonville, downsizing Boomers helped drive the condo and townhouse market.
The narrative of all Boomers trading mansions for cottages is a myth in reality their choices are diverse.
In fact, 30% ended up in a larger home than before.
This pattern became even more pronounced in 20182023 as Boomers financial situation improved.
In Arkansas, upsizing has been observed among those who sold homes in expensive markets and relocated.
By 2020, nearly 78% of Boomer homeowners had paid off their mortgage or held significant equity.
Those who still had loans often enjoyed interest rates under 4%.
As Boomers entered retirement age, many desired to be closer to children and grandchildren or to aging parents.
This was a major theme in 20182023: numerous Arkansas Boomers moved to be closer to family members.
Conversely, a Boomer in Arkansas might relocate out of state to live near adult children.
Financial considerations were significant: downsizing often frees up home equity.
One big factor was accommodating family a reverse of the empty-nest downsizer.
Some Boomers have adult children moving back home (the boomerang kids) or anticipate long-term visits from family.
The comfort of the familiar can outweigh the lure of change.
Boomers have deep roots, and leaving friends, churches, and routines behind is a major psychological barrier.
Consequently, a lot of Boomers stayed put through the early 2010s to wait for a market rebound.
Migration data confirm that Boomer mobility plunged after 2008.
This combination eventually set the stage for increased Boomer activity.
Low mortgage rates throughout the 2010s made it easier for Boomers who needed a new mortgage to consider moving.
More importantly, rising prices restored equity.
By the late 2010s, many Boomers found that their homes were worth more than ever.
At the same time, plenty of Boomers were buying homes.
Boomers, especially wealthier ones, jumped into the market alongside younger buyers.
For Boomers, there were a few effects.
Some of those early retirees accelerated their relocation plans, especially as remote work became common.
Second, interest rates were slashed to near 0%, making mortgages incredibly cheap through 2021.
Third, the surge in home prices meant that affordability became a concern even for well-off Boomers.
Nevertheless, many Boomers forged ahead, often competing with Millennials for the same suburban houses.
By 2022, Boomers edged out Millennials as the top buying force in the U.S. housing market.
Mortgage rates shot up from ~3% to ~7% within a year.
These changes had a cooling effect on Boomer mobility.
A national survey in late 2022 found 82% of homeowners felt trapped by their low-rate mortgages.
High inflation also squeezed Boomers budgets, especially those on fixed incomes facing rising property taxes and insurance premiums.
These states have consistently led in net gains of older adults.
Arkansas, by contrast, has been a more modest magnet.
It did attract Boomer retirees, but in far smaller numbers.
In the 20182023 period, Arkansas likely improved its standing somewhat, especially relative to high-cost northern states.
But it still doesnt compete with Floridas beaches or Arizonas warm winters in sheer volume of Boomer influx.
Instead, Arkansas tends to attract retirees from neighboring states or former Arkansans coming home.
Property taxes and insurance tend to be lower than in many other states.
Additionally, Arkansas exempts certain retirement income from state taxes, which is a boon for retirees.
Urban-Rural Distribution
Nationally, about 1 in 5 older Americans live in rural areas.
In Arkansas, its more than 1 in 2.
This stark difference means that the typical Boomer experience in Arkansas might be more rural than the U.S. average.
During 20082017, NWA saw an influx of working-age people, which somewhat diluted the concentration of Boomers.
Northern/Western Arkansas (Ozarks)
The Ozark Mountain region has long been a retirement haven.
Counties like Baxter and Marion have high shares of seniors, with median ages over 52 by 2016.
This region includes towns like Mountain Home, Harrison, and Eureka Springs.
During 20082017, these areas saw slower growth due to the recession.
From 20182023, as the economy improved, these regions likely saw a pickup in retiree migration again.
Southern and Eastern Arkansas
These regions have generally been losing population for decades due to economic decline.
Young people have left for better opportunities, and whats left is an aging population.
From 20082023, most of these areas saw net out-migration.
Some Boomers here left upon retirement often to move to Arkansass metropolitan or amenity-rich areas.
Those who stayed are aging in place by default.
Unlike the Ozarks, these regions are not attracting outside retirees.
An interesting development in 20212022 was Boomers leveraging their equity to out-buy Millennials.
They also made up 53% of sellers in that period.
Many Boomers view their home as their biggest asset and a pillar of financial stability.
And 86% said homeownership gives them a more stable home life.
This mindset explains a lot about their behavior its not just a house, its peace of mind.
We already see Silent Generation homeowners choosing locations based on nearby medical facilities.
Boomers in their late 70s are starting to prioritize this too.
This is a different kind of home-buying trend, one driven purely by health needs.
