How Baby Boomers and Gen Xers Are Redefining Retirement Living

The real estate market is undergoing a dramatic transformation that is reshaping the way we plan for retirement.

As a certified retirement coach, I’ve had discussions with both Baby Boomers and Gen Xers about rethinking the concept of home in an era where flexibility, community and financial agility have become paramount.

Recent statistics from the National Association of REALTORS® (NAR) Home Buyers and Sellers Generational Trends Report reveal that nearly 28% of Baby Boomers are planning to downsize within the next five years, while 62% of combined Gen X and Boomer homeowners emphasize the importance of flexible housing options in their long-term retirement strategy.

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These figures underscore the urgent need for a strategic approach — both financial and emotional — that embraces change and leverages real estate as a dynamic asset in retirement planning.

A new era in retirement living

For decades, Baby Boomers have cherished large, family-centered homes. However, as they approach retirement, many are shifting their focus to downsizing and embracing community-centric living.

Gen Xers, already laying the groundwork for their future retirement, are taking note of these transformative trends.

Instead of adhering to outdated notions of homeownership, both generations are opting for properties that offer reduced maintenance, enhanced accessibility and the promise of a more fulfilling lifestyle.

Jessica Lautz, NAR’s deputy chief economist and vice president of research, captures this transformation succinctly: “We are witnessing a fundamental shift in how retirees view their homes — not as static assets, but as dynamic components of their overall retirement strategy.”

Ryan Frederick, founder of Here in Austin, Texas, and author of Right Place, Right Time, reinforces this modern mindset by stating, “In today’s rapidly evolving real estate market, meeting uncertainty with flexibility isn’t just an option — it’s a necessity.”

His company has introduced the concept of “place planning” to prompt people to be as thoughtful about where they live as they are about their finances. (There is a free place planning assessment for individuals or that wealth advisers can use with their clients at www.here.life.)

These insights set the stage for understanding how today’s market is not merely about buying and selling property — it’s about shaping a lifestyle that adapts to evolving needs while ensuring long-term financial security.

The NAR research also shows that:

• Fifty-eight percent of Gen X homebuyers were married couples, providing them with dual incomes.
• Generation X buyers were the most likely to purchase a multigenerational home at 19% and also were most likely to purchase a home for a job relocation or move.
• Baby Boomers purchased for an array of reasons — primarily, the desire to be closer to friends and family due to retirement and the desire for a smaller home.
• Younger and older Boomers were likelier than others to purchase in a small town, and younger Boomers were the most likely to purchase in rural areas.
• Younger Boomers expect to own their homes for the longest period of time at 20 years, and older Boomers purchased the newest homes on average.

The driving forces behind the shift

Several key factors are spurring the current shift in real estate trends:

Lifestyle reorientation. After decades of managing large, multigenerational homes, many Baby Boomers are now seeking smaller, more manageable properties that reduce the burden of upkeep.

These homes are designed to provide modern amenities and enhanced accessibility, which are crucial for an active, independent retirement.

For Gen Xers, the takeaway is clear: Flexibility in housing is essential to adapt to life’s changing demands.

Financial flexibility. Unlocking home equity by selling a larger property can provide retirees with a significant cash infusion. This liquidity can be redirected toward building retirement savings, paying down debt or investing in a new home that better aligns with evolving lifestyle goals.

As Lautz explains, “The statistics clearly indicate that today’s retirees are planning not just for a home, but for a lifestyle that supports their health, mobility and social engagement.”

This financial agility is indispensable, especially in an economic environment where unforeseen expenses and market shifts are always a possibility.

Community and connection. Modern retirees are increasingly looking for more than just a place to live — they are seeking vibrant communities that offer built-in support systems, social engagement and comprehensive amenities.

Whether it’s an active retirement community or a mixed-use neighborhood blending urban convenience with suburban tranquility, the future of retirement living is deeply rooted in community connections.

Adapting to changing needs. The home of tomorrow must be adaptable. With the growing importance of accessibility features such as step-free entryways and wider corridors, properties that incorporate universal design principles are in high demand.

This focus on accessibility ensures that retirees can maintain their independence and quality of life, even as physical needs evolve.

Frederick emphasizes the value of approaching these changes with an open mind: "Embracing change opens the door to creative solutions — you never know where flexibility might lead you."

One of the most important areas in making a home longevity-resilient is ensuring the primary bathroom limits fall risks, such as including blocking behind the walls for grab bars, slip-resistant floors and low-entry showers.

Many of these adaptions can offer utility without sacrificing aesthetics.

Integrating a financial perspective: The importance of family conversations

Alongside these market dynamics, a critical element often overlooked in real estate and retirement planning is the role of family conversations.

Michael Gold, founder and CEO of Gold Family Wealth in Westport, Conn., underscores the importance of engaging with your loved ones to develop a long-term real estate strategy that extends 10 to 25-plus years.

As a seasoned expert in wealth planning, Gold states, "Having a family conversation is essential; it helps you shape a real estate strategy that not only supports the retirement you envision but also leaves a meaningful legacy for your loved ones."

This perspective is particularly valuable as it encourages open dialogue about goals, challenges and expectations. It ensures that decisions made today are aligned with both immediate needs and long-term aspirations.

Family conversations can help clarify priorities, whether it’s downsizing to reduce maintenance burdens, investing home equity to fuel a diversified portfolio or selecting a community that offers robust social and health care amenities.

Three ways advisers can help clients develop a retirement housing strategy

Successful retirement planning in today’s dynamic market requires a multidimensional approach that integrates financial planning, lifestyle considerations and an acute understanding of real estate trends.

Whether you’re an adviser working with a Baby Boomer who is contemplating a move to a smaller, maintenance-free home or helping a Gen Xer prepare for the next phase of their life, consider these strategic steps:

1. Help clients redefine homeownership. Traditional models of homeownership, centered around large, fixed assets, are being replaced by more dynamic and flexible approaches. Modern retirees view their homes not just as physical structures, but as integral components of their broader retirement strategy. They are assets that should actively support their lifestyle and financial goals.

As Frederick advises, “Homeownership has an important place in building wealth, but in the second half of life, it can have more downsides than people often realize. If homeowners are committed to not moving, they may be unwittingly signing up for a life that is not aligned with their lifestyle goals and, worse, may find themselves ‘stuck in place,’ particularly if they are unable to sell their home at a point when they must.”

By helping them to redefine what homeownership means, advisers can help clients transform their property into a tool that enhances their overall quality of life rather than a burden to be managed.

2. Help clients leverage financial resources wisely. For many retirees, selling a larger home is a strategic move designed to unlock significant financial resources. The proceeds can be used to bolster retirement savings, pay off debts or invest in a property that aligns more closely with long-term lifestyle aspirations.

This approach emphasizes financial flexibility, a key component of a secure retirement strategy.

Lautz reinforces this point: “The statistics clearly indicate that today’s retirees are planning not just for a home, but for a lifestyle that supports their health, mobility and social engagement.”

By helping clients leverage financial resources wisely, you not only help them secure their immediate financial well-being, but also help them position themselves for long-term stability and growth.

3. Stay informed and proactive. The real estate market is continuously evolving, and staying informed is essential. Regularly review market trends, consult with real estate experts and monitor economic indicators to ensure your knowledge remains timely and effective.

Being proactive allows you to help clients seize opportunities as they arise, whether that involves capitalizing on a seller’s market or identifying an investment that promises long-term benefits.

Four steps for Gen X and Baby Boomer homeowners

Gen Xers and Baby Boomers can harness the power of today’s evolving real estate market by considering these five steps:

1. Reassess your housing goals. Reflect on your current and future living needs. Evaluate whether your existing home aligns with your retirement vision or if a smaller, more manageable space might better support your lifestyle.

Consider factors such as maintenance demands, accessibility features and community amenities.

2. Develop a flexible financial plan. Collaborate with a trusted financial adviser to build a portfolio that prioritizes liquidity and flexibility. This strategy will enable you to respond swiftly to market opportunities — whether that means selling a property at an optimal time or reinvesting funds in assets that better align with your long-term objectives.

3. Embrace community living. Look for neighborhoods or retirement communities that offer robust social connections and comprehensive wellness amenities. Investing in a community that promotes health, social interaction and active engagement can dramatically enhance your quality of life.

4. Cultivate a network and engage in family conversations. For high-net-worth families, building a network of professionals — real estate agents, financial advisers, estate planners and community developers — goes hand-in-hand with fostering open communication among family members.

Also, “family meetings” are essential for clarifying priorities, aligning expectations and crafting a cohesive long-term strategy that addresses both immediate financial needs and the overarching family legacy.

In practice, family conversations should go well beyond day-to-day money matters. For instance, high-net-worth families often hold diverse real estate portfolios — ranging from primary residences and vacation properties to investment holdings in multiple states or countries.

“Family meetings provide a forum for discussing how to protect and manage these assets, determine whether certain properties should be retained or sold and identify opportunities for leveraging real estate equity to support charitable endeavors,” Gold says.

“Additionally, including younger generations in these discussions,” he says, “helps build their financial literacy and encourages them to take ownership of the family’s philanthropic mission.”

He notes that by involving younger generations in decisions about estate planning, legal structures and charitable giving, families can foster unity and continuity across generations.

“This comprehensive approach ensures that retirement plans and real estate strategies not only secure your personal future but also strengthen the family’s collective goals, values and aspirations for generations to come,” Gold says.

Moving forward with confidence

The evolving real estate market offers a wealth of opportunities for those who are ready to embrace change. As Baby Boomers move toward downsizing and Gen Xers prepare for their own transitions, the future of retirement living is set to be defined by flexibility, community and informed decision-making.

Whether through strategic downsizing, wisely leveraging home equity or engaging in meaningful family conversations to shape a long-term real estate strategy, the choices you make today will pave the way for a retirement defined by financial security and enriched by deep personal fulfillment.

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