The Homes Boomers will retire in

[soccerluvof4]

As a tail end Baby Boomer in FI but waiting on my DW (3.5 years) and 2 of our 4 kids then to be off to college I find myself thinking of this often.

http://www.marketwatch.com/story/the-homes-boomers-will-retire-in-2014-04-10 

Currently we live in the midwest between to major citys (30mins from one and 45 from the other) in the burbs in a very good school district with high Taxes ($9300 a year). So we are leaning since when in Total FI to sell our current home when the two oldest go off and move into like a 1800squ foot maintance free ranch another 10 miles out. We will be able to still keep our kids in same school district but taxes will be less than a third and will be quiet.  Get tired of the winters take longer weekends trips to warmer climates.  Subject to change but thats what i see for us as of now though I would love to leave for NC. I think kids in College go change alot of the thinking.

What will be your scenario.

[OldDogNewTrick]

Hehehe Interesting question that hits 'home' hard. We purchased our current home in 99 to fit our school district needs at the time, (we were blending two families). We planned on selling in 2008 when the last one graduated HS and moving to a more desirable location closer to city center. 2007 hit. Fast forward to 2014 and our local real estate market has only just begun to recover. Now the darn house is paid off in a couple years, they built a hospital less than a mile away, and our property taxes are grandfathered in at around $1200.00 a year. And we are in our 50s.

It is like we were playing musical houses... and the music stopped. The house is a Rutenberg built home so has excellent bones. It is a relatively modest 2000 sq ft. It is a ranch so universal design friendly.  There are a dozen solid reasons not to sell but it is a big life disappointment to end up permanently in this locale. Every now and again, usually after the 2nd glass of red wine I start thinking about throwing caution to the wind and selling. It is the property tax that represents the biggest hit.... my neighbors who moved in after 2000 pay 4x the property taxes I do. If we move into one of the towns we love closer to the population center our property tax will be 5x to 6x what we are paying now.

[begood]

The house is a Rutenberg built home so has excellent bones. It is a relatively modest 2000 sq ft. It is a ranch so universal design friendly.  There are a dozen solid reasons not to sell but it is a big life disappointment to end up permanently in this locale.

A 2000 sf. ranch house in Florida? That's, like, my ideal home! As I shivered through our truly horrendous (and looooong) winter in the Northeast, I dreamed of living in a 2000 sf ranch house in Florida. Having lived outside Orlando for seven years in the late 90s/early 00s, I know Florida has a lot of problems... but a 2000 sf. ranch house in a warm climate isn't one of them. :)

Maybe don't think of it as permanent. Who knows what's still ahead? Maybe it's a hold-on-for-now place, with opportunities unimagined still to come.

[Breaker]

It is now called "retiring in place".  Because of the housing market the last few years it has often become more economically viable to retire in the home that you own.  Instead of moving because often taxes are lower and house payments are lower. 

I think that if I were in your position, I would explore the possibility of spending the money saved by staying in your present home, for either a small apartment/condo in the city to be used when the notion strikes you or think about renting a nice hotel room several times a year once retired.

Actually I like the idea of the hotel room best.  No up keep and no housekeeping either. 

Look at the problem in a different way.  You might find a solution that will give you what you want without giving up a house that is paid for.

Jan

[Thegoblinchief]

My parents will likely stay in their house until they physically can't. My Dad has owned it since 1967, and it's been paid off and re-mortgaged at least 3 times that I know of.

They'd like to move to a slightly more rural area, but can't afford it without leaving the region altogether.

[Lans Holman]

The other big question is who is going to buy the homes they are living in now.  A lot of younger folks are delaying marriage and kids and then even when they do form families are more likely to stay in urban areas.  Not everyone of course, but enough to make it far from certain that there will be enough buyers for the large suburban single family homes those boomers are going to be looking to sell.

[ZiziPB]

I will be downsizing from a 1600 sq ft townhouse to a 650 sq ft apartment (also a different country and a different continent ;-).  Very excited about it!

[infogoon]

The other big question is who is going to buy the homes they are living in now.  A lot of younger folks are delaying marriage and kids and then even when they do form families are more likely to stay in urban areas.  Not everyone of course, but enough to make it far from certain that there will be enough buyers for the large suburban single family homes those boomers are going to be looking to sell.

That's the truth. The underwater cul-de-sac McMansions out in the suburbs are going to be a tough sell, especially once the shoddy building materials start falling apart and expensive gasoline makes long commutes less attractive.

[Capsu78]

We are having the same discussion too- empty nesters, middle/ late 50's in 3000sf with an acre of landscape and $11000 property taxes. we have renovated nearly everything and are 2.5 years to payoff.  We are 10 minutes from both our grown kids and grandkids who we want in our lives.  DW needs to be train station friendly to get to her big city job.
I would like to move into a single level home, near by, smaller lawn, fixed up to the standards of our current home- but cant find any smart way to do it- taxes are high in every direction and every place we have walked through still wants renovation.  I have to chop at least a couple of the factors down to make it viable- lower taxes, maintenance or improved "long term" design.
 

[begood]

I think the McMansions would make great modern-day group homes for seniors who aren't as active as they used to be but aren't ready for assisted living. You could put a full-time caregiver in the "master suite" - free housing - bedroom, sitting area, full bath, great closet - in return for providing transportation, assistance with daily activities, etc. - and then put an individual (or even a couple, depending on the room size) in each of the other bedrooms. With the McMansions' massive kitchens, cavernous "family rooms" in addition to formal living rooms and dining rooms, there's plenty of space for activities, relaxing quietly, preparing meals for a sizeable group, etc.

Some mods might need to be made in bathrooms - low-step showers and high-seat toilets, for example, and a chair lift might be required for some, since two stories seems to be the norm. But imagine the community that could be developed - the relationships, the reduction in anxiety, the increase in social nutrition and actual nutrition from regular meals and someone to eat them with.

I know, I know... zoning blah blah... nursing experience blah blah... reliable help... blah. It's a dream!

[TreeTired]

We didn't plan this, because I was involuntarily and unexpectedly retired at age 54.  We lived in a very expensive NJ town highly prized for it's good public schools.  Property taxes were very high.  Fortunately,  our 2nd and last son was well into his senior year of HS when my job ended.  After he graduated from HS and went off to college we sold our very expensive home and moved to much cheaper housing in North Carolina.    Not a ranch, but my wife insisted on a house with a master bedroom on the first floor for longterm planning, when we get old and feeble.

oh, and I fogot.  Wife redid the masterbath and included a zero threshhold shower stall.  Looks really cool but also lets you wheel a chair straight into the shower stall if you were so inclined.

[brand new stash]

I think the McMansions would make great modern-day group homes for seniors who aren't as active as they used to be but aren't ready for assisted living. You could put a full-time caregiver in the "master suite" - free housing - bedroom, sitting area, full bath, great closet - in return for providing transportation, assistance with daily activities, etc. - and then put an individual (or even a couple, depending on the room size) in each of the other bedrooms. With the McMansions' massive kitchens, cavernous "family rooms" in addition to formal living rooms and dining rooms, there's plenty of space for activities, relaxing quietly, preparing meals for a sizeable group, etc.

Some mods might need to be made in bathrooms - low-step showers and high-seat toilets, for example, and a chair lift might be required for some, since two stories seems to be the norm. But imagine the community that could be developed - the relationships, the reduction in anxiety, the increase in social nutrition and actual nutrition from regular meals and someone to eat them with.

I know, I know... zoning blah blah... nursing experience blah blah... reliable help... blah. It's a dream!

There is a house like that in our neighborhood. 

[Thegoblinchief]

In my area a lot of young couples go straight to building a new house.

I think neighborhoods like mine, built in the 50s, are going to slowly decline and then eventually get razed and rebuilt over the next few decades.

[Lans Holman]

I think the McMansions would make great modern-day group homes for seniors who aren't as active as they used to be but aren't ready for assisted living. You could put a full-time caregiver in the "master suite" - free housing - bedroom, sitting area, full bath, great closet - in return for providing transportation, assistance with daily activities, etc. - and then put an individual (or even a couple, depending on the room size) in each of the other bedrooms. With the McMansions' massive kitchens, cavernous "family rooms" in addition to formal living rooms and dining rooms, there's plenty of space for activities, relaxing quietly, preparing meals for a sizeable group, etc.

Some mods might need to be made in bathrooms - low-step showers and high-seat toilets, for example, and a chair lift might be required for some, since two stories seems to be the norm. But imagine the community that could be developed - the relationships, the reduction in anxiety, the increase in social nutrition and actual nutrition from regular meals and someone to eat them with.

I know, I know... zoning blah blah... nursing experience blah blah... reliable help... blah. It's a dream!

There is a house like that in our neighborhood.

Yes, this basically sounds like what's called an adult family home.  They can be a pretty good solution for a some seniors but if you are including meals, caregivers, help with ADLs, etc. you are comparable to assisted living and are going to have prices that reflect that.  The AFHs I'm familiar end up primarily appealing to residents with some pretty serious challenges. 
It would be cool to see more co-housing/ co-op sorts of arrangements.

[begood]

I think the McMansions would make great modern-day group homes for seniors who aren't as active as they used to be but aren't ready for assisted living. You could put a full-time caregiver in the "master suite" - free housing - bedroom, sitting area, full bath, great closet - in return for providing transportation, assistance with daily activities, etc. - and then put an individual (or even a couple, depending on the room size) in each of the other bedrooms. With the McMansions' massive kitchens, cavernous "family rooms" in addition to formal living rooms and dining rooms, there's plenty of space for activities, relaxing quietly, preparing meals for a sizeable group, etc.

Some mods might need to be made in bathrooms - low-step showers and high-seat toilets, for example, and a chair lift might be required for some, since two stories seems to be the norm. But imagine the community that could be developed - the relationships, the reduction in anxiety, the increase in social nutrition and actual nutrition from regular meals and someone to eat them with.

I know, I know... zoning blah blah... nursing experience blah blah... reliable help... blah. It's a dream!

There is a house like that in our neighborhood.

Yes, this basically sounds like what's called an adult family home.  They can be a pretty good solution for a some seniors but if you are including meals, caregivers, help with ADLs, etc. you are comparable to assisted living and are going to have prices that reflect that.  The AFHs I'm familiar end up primarily appealing to residents with some pretty serious challenges. 
It would be cool to see more co-housing/ co-op sorts of arrangements.

What's the saying? "Needs must"? If we have an abundance of boomers who may or may not have adequate retirement savings and an abundance of overly large/overly expensive homes looking for occupants, there may be opportunities to match them up. I realize my vision of it is Utopian and simplistic, but it is cool to think about.

[Breaker]

Hi,

I think that perhaps some of you are behind the times.  Home prices are on the rise.  In my area my house is worth more than it was in 2007.  I live in a suburb in No. Ca. in a 3 bedroom, 2 bath home.  There were a few homes that sold as short sales in my neighborhood but not many.  I live in one of the best school districts so the houses around here always have a market.  As long as the population keeps increasing, there will be buyers for houses. 

There may be some down markets but this is the first time since I have owned a home that prices have gone down and now they are right back up.  I don't think that you will see very many big homes standing empty.  Most Americans want, more, more, more, bigger, bigger, bigger.  Which is why the Mustachian way of life is so weird to most of your friends.

Jan