Kiplinger

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

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.

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.

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."

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."

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