55+ers Poised to Have Significant Impact on Housing Market
MCLEAN, VA--(Marketwired - Jun 8, 2016) - Three out of four homeowners born before 1961 are confident they will have a financially comfortable retirement according to the Freddie Mac 55+ Survey, a comprehensive survey of the housing perceptions and preferences of Americans over the age of 55 released today by Freddie Mac (
The first Freddie Mac 55+ Survey also found that the majority of homeowners in this age group were very satisfied with their homes, their communities and their quality of life. Consistent majorities also said homeownership makes financial sense at almost every stage of adult life, whether or not a person is married or has children.
"The overwhelming message of the Freddie Mac 55+ Survey is that homeownership works. The American Dream delivered greater financial stability and satisfaction to the homeowners who lived through every recession since the 1970s, including the housing crisis of 2008," said Dave Lowman, executive vice president of Single-Family Business at Freddie Mac.
In addition, while many over the age of 55 would prefer to age in their current home, nearly 40 percent said they would prefer to move at least one more time, and 70 percent of those said they are likely to purchase their next home. According to Lowman, this will create significant opportunities and challenges for the industry for years to come.
"The decisions the nation's Baby Boomers and other older homeowners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future," Lowman said. "Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation's home equity makes it very important that we watch what they do."
Conducted by GfK on behalf of Freddie Mac, the Freddie Mac 55+ Survey is based on responses from nearly 6,000 homeowners and renters. The Survey explored other questions related to the housing preferences, retirement plans and financial concerns of Baby Boomers and older homeowners.
Freddie Mac plans to release a separate analysis of 55+ renters once it is complete.
Methodology
GfK conducted an online survey on behalf of Freddie Mac using the GfK KnowledgePanel® from February 10-23, 2016. A total of 5,914 interviews were completed online, including oversamples of African-Americans, Hispanics and Asians, obtained through additional opt-in sample. Interviews were conducted in both English and Spanish. GfK's KnowledgePanel® is the only large-scale online panel based on a representative random sample of the U.S. population. The margin of sampling error was +/- 1.27 percentage points for the full sample. Sampling error is higher for subgroups. See the report for the full methodology.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is the largest source of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac
The Freddie Mac 55+ Survey Key Findings
Baby Boomer Homeowners Expect a Financially Comfortable Retirement
Why Baby Boomers Drive the Housing Market for Millennials