Baby boomersthose born between roughly 1946 and 1964have significantly influenced Nebraskas real estate market in recent years.
Many downsized, others chose homes closer to family, healthcare, or lifestyle amenities.
Around one-quarter of Nebraskans are baby boomers, making this generation the largest in the state by population.
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As of the late 2010s, boomers (in their mid-50s to early 70s) outnumbered millennials in Nebraska.
This demographic shift means a growing number of Nebraskans are entering typical retirement ages.
Many are long-time homeowners.
In Nebraska, baby boomers also hold a substantial share of housing.
In 2023, about 36% of all homeowner households in Nebraska were headed by a baby boomer.
This indicates that over one-third of the states owner-occupied homes are owned by someone roughly 5977 years old.
Baby boomers decisions on whether to stay put or move have a big impact on housing availability for others.
Home prices climbed steadily, especially during the pandemic-era housing surge.
Nebraskas median home values jumped sharply in 20202021, reaching new highs.
Market Forces and Baby Boomer Influence
Several factors drove these trends.
Low interest rates through 2020 and 2021 made mortgages more affordable, fueling demand.
At the same time, there was a limited supply of homes for sale.
For baby boomer buyers, these market conditions were a double-edged sword.
This equity boost enabled some boomers to buy homes outright with cash.
Another notable market trend was the shift in who was buying homes.
Nationally, baby boomers edged out millennials as the largest share of home buyers during this period.
Nebraska likely mirrored this trend.
Urban vs.
Many urban boomers chose to move closer to family or services, butnot necessarily into city high-rises.
In fact, a lot of boomer moves in urban Nebraska kept them in suburban-style environments.
Proximity to healthcare, shopping, and family are key draws.
In Omahas suburbs, local officials have recognized the need for more housing options that suit downsizing seniors.
Urban boomers also showed some interest in condos and townhomes, though single-family houses remained the top choice.
A portion of older buyers opt for townhouses or condominiums in the city to avoid yard work and stairs.
However, the vast majority of baby boomers buying in Nebraskas urban counties still purchased detached single-family houses.
Theres strong demand among Omahas older residents for one-level, low-maintenance homes in walkable neighborhoods as they age.
When these long-time residents decide to move, its often to downsize or to be closer to essential services.
Rural Housing Challenges
Rural housing supply is a critical issue affecting these decisions.
This has led to innovative projects aimed at addressing the silver tsunami of senior housing needs in rural Nebraska.
Despite these challenges, when the right home comes on the market, rural baby boomers are ready buyers.
Housing Preferences
What types of homes are baby boomers buying?
National statistics show that over three-quarters of baby boomer buyers purchase detached single-family houses.
In Nebraska, this preference is evident across both urban and rural prefs.
Boomers generally like the privacy and familiarity of a single-family home.
Many have owned such homes for decades and feel most comfortable in that throw in of property.
However, thesizeandfeaturesof the homes they seek have shifted to match their stage of life.
Downsizing Trend
One notable trend is downsizing.
Split-level or two-story houses are less appealing as owners anticipate mobility issues with aging.
In Nebraska, ranch-style (single-level) homes are popular among retirees.
Boomers also appreciate homes with modern amenities and energy efficiency (to reduce utility bills and maintenance headaches).
For example, an empty-nest couple might sell their old 2,500 sq.
ft. farmhouse and buy a newly built 1,600 sq.
ft. ranch in a 55+ development, trading unused space for updated design and single-floor living.
These attached homes offer a low-maintenance lifestyle that attracts some seniors.
Some boomers also show interest in new construction homes to avoid the repair issues that come with older houses.
Motivations for Moving
Why were baby boomers buying homes during 20182023?
Their motivations often differed from those of younger buyers.
Rather than job relocations or expanding families, boomers decisions were usually driven by lifestyle and personal considerations.
Nebraskas boomers echoed these motivations.
One major factor was family ties.
Many boomers chose to move to make it live nearer to their adult children or grandchildren.
Retirement itself is another big motivator.
Some boomers moved after retiring from their jobs, either to downsize or to relocate to a preferred area.
Or conversely, they might move from a rural setting to a city to enjoy retirement conveniences.
Financial Advantages and Cash Buyers
Financing and economic factors also played a role in boomer buying trends.
A striking aspect of this period is how financially prepared many boomer buyers were.
In other words, a majority of boomer buyers did not take out large new mortgages.
Even those who did finance often made large down payments.
Shift in Market Share
One key difference is the share of home purchases made by boomers.
By contrast, 20182023 saw boomers rebounding to become the top buying group.
Housing Market Conditions
The late 2000s were marked by the housing bust and Great Recession.
Around 20082012, housing activity was very slow.
Their moves often involved job relocations or early retirement plans.
Some even upsized in the mid-2010s if they had delayed a purchase due to the recession.
Thus, downsizing and retirement relocation became far more prominent motivations in the latter period.
Conclusion
From 2018 through 2023, baby boomers significantly shaped Nebraskas housing landscape.
This period also highlighted the financial power of the baby boomer generation in real estate.
Understanding boomer behavior is thus key to understanding the present and future of home ownership in Nebraska.
