New Jerseys baby boomer generation (born 19461964) has significantly impacted the housing market in recent years.
Their choices are shaped by retirement, finances, family, and the COVID-19 pandemic.
This article explores how New Jersey boomers have been buying homes, selling, or staying put during 20182023.
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Staying Put vs.
Many have lived in their houses for decades and feel comfortable staying put.
At the same time, downsizing is a common goal for a substantial share of boomers.
After children move out, empty-nesters often find they dont need a big house with many bedrooms.
Not every boomer is buying a tiny condo.
Some who do move opt for different kinds of homes, not always smaller.
This housing shortage can make downsizing tricky, causing some to stay in place longer than theyd like.
Many retirees love the idea of seeing the grandkids more often or having adult children within an easy drive.
Retirement and Financial Considerations
Another big motivation is retirement itself.
In New Jersey, retirement often pushes homeowners to consider lower-cost areas.
The states high cost of living and property taxes are well-known concerns for retirees.
Some choose to live in a community that provides maintenance services or even assisted living if needed.
Modern 55-plus communities often advertise resort-style amenities because boomers value recreation and social connection in their retirement years.
This enabled some to buy their dream retirement home outright with cash.
About 42% of older New Jersey homeowners reported struggling with the cost of home upkeep and repairs.
This opened up options to move while still employed.
Space and Safety Considerations
The pandemic made home feel like a safe haven.
Within New Jersey, there were reports of people leaving dense urban neighborhoods for homes with yards.
This likely boosted demand for suburban single-family homes in 20202021.
Rise in Multigenerational Living
Another response to COVID was the rise in multigenerational households.
A good portion of those rate-locked owners are baby boomers who now plan to stay put even longer.
New Jersey has seen a boom in these developments, from leafy suburban subdivisions to sleek new apartment complexes.
Baby boomers, who famously redefined youth culture in the 1960s and 70s, are now redefining retirement living.
Luxury Downsizing
Developers in New Jersey report strong demand for these communities.
For instance, Toll Brothers and other builders have launched upscale 55+ projects in the state.
They are often moving from a big four-bedroom house to a nicely appointed two-bedroom townhome or condo.
The appeal is shedding the burden of yard work and maintenance while keeping a comfortable lifestyle.
Location and Rental Options
The locations of 55+ communities in New Jersey vary.
Quite a few are in suburban areas or on the fringes of metropolitan regions.
A recent trend is the creation of 55+ rental communities, not just ownership.
New Jerseys offerings in this category are plentiful, so local interest is high.
Geographic Trends: Where Are Boomers Moving?
Geographically, baby boomers in New Jersey are making a variety of housing choices.
States like Florida, the Carolinas, and Pennsylvania attract NJ retirees each year.
New Jersey consistently ranks among the top states that retirees move out of.
When boomers do leave NJ, Florida tends to be the number-one destination.
(Over 35,000 New Jerseyans relocated to Florida in 2023 alone, a significant number of them retirees.)
This continued between 2018 and 2023, with boomers buying homes near the coast or in adult communities there.
Urban vs.
Suburban Choices
Historically, boomers raised families in the suburbs, and many remain there.
However, this is balanced by the fact that most boomers still prefer a suburban or small-town setting.
In contrast, very few boomers chose to buy in urban city centers.
As they get older and potentially stop driving, these boomers could face challenges.
When boomers sell, what do they do next?
A good number purchase another home, often out-of-state or in a 55+ community.
Others choose to rent after selling pocketing their profits.
Boomers have been trading homes later in life selling one and buying another that better fits their next stage.
This suggests many even left their immediate region.
Older boomers (in their 70s) moved a median of 60 miles.
20182023 vs.
Indeed, analysts noted that the expected wave of boomer downsizing hadnt materialized yet by the early 2010s.
By contrast, 20182023 saw a strong housing market (especially 20202022) with rising prices.
This gave boomers confidence that they could sell at a good price.
As a result, 20182023 had far more boomers actively making retirement housing decisions.
Mortgage rates were moderate to low, which helped some boomers refinance and remain in place comfortably.
However, by 20222023, interest rates spiked rapidly, making new mortgages costly.
The concept of working-from-home in a 55+ community wasnt a factor in 20082017; now it is.
The amenities have also become more upscale and tailored to boomers expectations in the latter period.
