BABY BOOMERS IN THE HOUSING MARKET – WHAT’S AHEAD IN THEIR GOLDEN YEARS? Presented by Carmen Hirciag, MBA Senior Research Analyst

What Defines Boomers?

WHO IS YOUR TYPICAL BABY BOOMER? Demographics

Typical Baby Boomer 59 Years old 58% College educated 79% Caucasian 56% Married Median annual income: $75K

Average Age: 59 What is your age?

Nearly 6/10 are Married What is your marital status?

More than ½ Have College Degree What is the highest level of education you have completed?

Very Little Diversity Among Baby Boomers What is your ethnic background?

28% Retired, 5.6% Unemployed What is your profession? Management 7.9% Sales / retail 5.6% Education Engineer 4.8%

Median Annual Income: $75,000 What is your annual household income?

Current Residence In which California county do you currently reside?

HOME OWNERS

3/4 Baby Boomers are Home Owners What is your current living situation?

>1/3 are First-time Buyers Was that your first home purchase?

Average Number of Years in Current Residence: 16 How many years have you been living in your current residence?

8/10 Purchased Homes Before 2007 What year did you purchase your home?

Most Live in Single Family Homes In which type of home do you currently live?

Median Purchase Price: $229,000 What was the purchase price of the home?

Most Have Equity in their Home Do you have equity in your home?

Majority Plan to Keep Home Over 20 Years How many years do you plan to keep your home?

Most Don’t Plan to Use Home Equity for Income During Retirement Are you planning on using this equity for income during retirement?

Majority of Respondents Would Not Consider Acquiring a Reverse Mortgage Would you consider acquiring a reverse mortgage to assist with living expenses during retirement?

Only 5% Have Gone Through Foreclosure/Short Sale Have you ever gone through a foreclosure or short sale?

44% Own Other Homes How many other properties do you own?

Most Other Properties Located in CA Where are those other properties located?

Majority of Other Properties are Investments How are those other properties used?

RENTERS

Median Monthly Rent: $945 How much is your monthly rent?

Affordable Rent is Top Reason for Choosing Current Residence What was the most important reason for electing to live in your current residence?

Nearly ½ Renters Previously Owned a Home Have you ever owned a primary residence?

Majority Sold Home Before 2006 What year did you sell your primary residence?

Many Sold Home for Family Reasons Why did you sell your previous primary residence?

Majority Rent Because they Can’t Afford to Buy Why do you rent instead of buying?

Nearly ½ Renters Don’t Expect to Buy a Home When do you expect to buy a home?

Improvement in Finances Would Motivate Most to Buy a Home Now What would most motivate you to buy a home now?

47% Have Debt that Prevents Buying a Home What type of debt do you have that would make it difficult to buy a home?

OUTLOOK TOWARDS THE FUTURE Retirement and the Golden Years

Average Number of Years Until Retirement: 9 In how many years do you plan to retire?

Majority Do Not Plan to Sell Home When they Retire Do you plan to sell your current home when you retire?

Majority Won’t Sell Because they Like their Home Why do you not plan to sell your current home when you retire?

Some Plan to Downsize What type of new home are you planning on purchasing?

Others Plan to Move Out of State Where do you plan on moving when you retire? N = 45

¼ Postponed Retirement Mainly Due to Financial Hardship Did you have to postpone your date of retirement due to any of the following?

> ½ Do Not Feel They have Saved Enough Money to Retire Comfortably Do you feel you have saved enough money to retire comfortably?

3/10 Live with their Children Do you live with your children?

61% Live with Adult Children Please identify the age of your children who currently reside with you.

Many Living with Children due to Financial Troubles Why do you live with your children?

Baby Boomers Pay for Most Household Expenses Please select the correct allocation of responsibility for household expenses. (I pay/children pay)

Median Amount Paid by Children Monthly for Living Expenses: $325 How much does your child pay each month for living expenses?

Majority Worry About Children's’ Ability to Become Home Owners Do you worry about your children’s ability to become home owners in the future?

2/5 Plan to Help Children with Down Payment Do you plan to help your children with their down payment to purchase a home?

What Financial Decision Would Boomers Change? If you could change one financial decision that you made within the past 10 years, what would it be?

What Keeps Boomers Up At Night? What keeps you up at night?

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THANK YOU! Questions?