Yet despite predictions of an apocalyptic wave of downsizing, many boomers are choosing an unexpected path.
Nationally, Americans 55+ owned 54% of owner-occupied homes in 2023, up from 44% in 2008.
Aging in Place vs. ## Urban, Suburban, or Rural?
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Maines baby boomers are spread across urban, suburban, and rural controls with different micro-trends.
However, some are relocating for convenience.
Maines appeal for retirees is its quality of life natural beauty, outdoor recreation, and charming communities.
Some Maine boomers leave the state upon retirement seeking warmer weather or to be closer to grandchildren.
Affordability & Cost of Living
Affordability is complex for Maines boomers.
For long-time homeowners, Maines rising home values have been a boon their home equity has grown significantly.
However, for boomers looking to buy in 20182023, prices were much higher than a decade prior.
This rapid appreciation made downsizing to a smaller house or moving to a coastal town more expensive than expected.
Out-of-state boomer buyers often find Maine affordable compared to where they come from.
Climate and Healthcare Access
Climate plays a push-pull role.
Historically, many Maine retirees became snowbirds, spending winters in Florida or Arizona.
That still happens, but the trend showed signs of shifting during 20182023.
As other regions experience extreme heat, Maines milder summer climate has become a selling point.
Healthcare access is crucial in housing decisions.
However, Maine has taken steps to be more retiree-friendly in taxation.
This means middle-class retirees often pay little to no state income tax on typical retirement incomes.
For boomers who already owned homes, this surge meant a big increase in housing wealth.
High prices coupled with low inventory discouraged intra-state moves.
Boomers who didnt need to move often chose not to, since staying put was financially safer.
Many boomers took advantage: some refinanced mortgages, and others purchased vacation or retirement homes with cheap loans.
However, the situation reversed sharply in 2022.
By late 2022, the average 30-year mortgage rate was around 7% the highest in over a decade.
The spike in rates thus froze many boomers in place by 20222023.
By contrast, 20222023 brought high inflation which increased everyday expenses for retirees.
Heating oil, gasoline, and groceries all important in Maine became significantly more expensive in 2022.
This squeezed some retired boomers budgets and may have delayed elective moves.
Maines in-migration during the pandemic drove housing demand up while supply was low, affecting all buyers.
Some boomers ultimately bowed out of buying because they refused to engage in frantic bidding.
Regional Breakdown: Where Are Boomers Buying in Maine?
Out-of-state boomers often target these towns.
These tend to be affluent boomers who can afford waterfront estates or historic homes with ocean views.
With limited housing supply, many coastal communities have seen retirees bidding up prices.
A 2023 finance column listed Camden and Bar Harbor as beautiful but potentially overpriced retirement towns.
From 20182023, a number of Maines rural boomers relocated to the Bangor area to be closer to services.
Housing in Bangor is comparatively cheap roughly half the price of southern Maine.
Rural areas of Maine have aging populations and youth out-migration.
The trend for boomers here has been largely stay if you could.
Many have deep roots (family land or multi-generational homes) and have remained in place into retirement.
When older residents pass away or move to assisted living, there often arent younger families moving in.
Unlike southern regions, rural Maine did not see a significant influx of retiree homebuyers during this period.
Home Types and Preferences
Maine boomers overwhelmingly prefer single-family detached homes.
Condominiums gained popularity with some boomers, especially in urban areas and coastal communities.
However, monthly HOA fees and high purchase prices for newer units deterred many boomers.
Maine has a handful of active adult (55+) communities that saw steady interest.
Highland Green in Topsham offers custom-built homes and amenities aimed at active retirees.
These communities attract those who want to live among peers in a ready-made social setting.
Theyre typically priced at the higher end, mainly drawing middle-to-upper income retirees.
Many were mid-career or retirement-age individuals, making Maine more of a retirement destination than in the previous decade.
The housing market differed dramatically.
Inventory and construction also contrasted sharply.
The earlier decade saw predictions of a coming silver tsunami of boomers selling homes and downsizing.
But Maine, like much of the country, found that the wave didnt materialize as expected.
By 20182023, it became clear that boomers were moving even less frequently than before, despite being older.
