Baby Boomers And Real Estate - Some Interesting Statistics
October 21st, 2006 • Related • Filed Under
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The Baltimore Sun had these very interesting statistics on how the baby boomers and real estate play in their investment portfolio. Here is a hint, it is a very important part…
- Ninety-six percent of all boomers believe that owning a home is a very smart financial investment, and nearly 4 out of 5 now own homes, while 1 in 4 boomers owns other forms of real estate besides a primary home. These include one or more vacation or seasonal retreats, acreage or income-earning property.
- The value of boomers’ primary homes varies sharply by geographic region. Overall, the median market value of their homes nationwide is $181,700. But in the Midwest, the median is $143,400, in the South it’s $147,800, the Northeast $215,000, and in the West $359,100. One of every 14 boomer households in the Western states owns a home worth $1 million or more.
- Home equity plays a huge role in boomers’ financial planning and well-being. Their median equity stake - the market value of their real property minus mortgage debt - is $100,000. The median household net worth of boomers - financial holdings plus real estate, minus all debt obligations - was $149,500 in early 2006. However, 23 percent of boomers age 50 to 60 control equity stakes of $250,000 to $1 million or more. Fifteen percent of boomers aged 42 to 49 already have accumulated home equities of $250,000 to $1 million.
- Home equity represents a significant percentage of total household net worth for most boomers. Thirty-six percent of 50-year-old to 60-year old homeowners report that the equity in their primary residences is 51 percent to 100 percent of their household net worth. Thirty-eight percent of boomers between 42 and 49 report the same. via the baltimoresun.com.


Comment by Gary Anderson on 21 October 2006:
This is a disturbing article. Housing values will tank or flatten for 7 years, maybe longer. I personally think the crash will be even worse. This will make these retirement nests very precarious.