What are Baby-boomer Buyers buying (the recent buyer of Paul Allen's mega-mansion in the South of France is 75 years old):
1. They often buy their 'dream home' big enough to attract their entire family. Smart grandparents know how a pool or tennis court or other resort-style amenities makes grand kids visit!
2. Second and third homes, often smaller homes, competing with entry-level buyers.
3. They buy in states with lower costs and taxes to preserve wealth.
4. Many seek warmer climates.
5. Many are moving closer to where their kids have moved.
6. Some who have sold a business or done well with stocks or a big residence sold are buying a trophy property.
7. Some are buying homes with more than one structure for multi-generational use or to house help.
8. Some are focused on aging in place, seeking a single-floor living.
9. Many planning to travel more seek low-maintenance properties with lock-up-and-leave attributes. This often means condos with staffing and shared amenities they don't have to manage or maintain.
10. Some who have rented out a large primary home as an investment for the past few years are now doing 1031 exchanges to avoid large capital gains taxes, diversifying the one big asset into several smaller assets or a multi-unit property.
11. Some who have rented all their lives are finally realizing their dream of home ownership: 46% of older Baby boomers were first-time home buyers, often buying in more affordable areas, or retirement communities, seeking more fixed home costs in their next chapter. A lifetime of paying (rising) rent can be very motivating.