Now that a huge wave of baby boomers has left the workforce—30 million at the height of the pandemic, according to the Pew Research Center—many are considering where and how to live.

Key Takeaways:

• Boomers don’t have one set of wishes as they downsize, so listen carefully to their preferences.
• The vast majority want to age in place, and the home should be designed for or adapted to their changing health needs, such as fewer stairs and good lighting.
• Staying connected to friends, family, and neighbors and avoiding being isolated is a growing concern.

As they retire from the workforce, some baby boomers are looking to relocate to maintenance-free homes or condos. Or they want to be near their children or grandchildren in what has been termed “baby chasing.” Others want to head to a warmer climate full- or part-time, often choosing active-aging communities where they can pare maintenance, enjoy activities, and meet new people.

However, most baby boomers want to age in place. This may require changes to their home to live more conveniently and safely as health challenges arise.

Many residential design options emerging today reflect trends seen in the luxury hospitality industry, like country clubs and spas, says architect Rocky Berg, whose Dallas-based boutique design firm, three(link is external), works in the hospitality, residential, and senior living segments.

“Boomers are all about having choices,” Berg says. “They’re accustomed to having what they want when they want it.”

But having more options can make the decision tough. No single choice fits every boomer’s interest, budget, and health situation, particularly since their ages range from 57 to 75 years old, says Chicago-based commercial interior designer Mary Cook of Mary Cook Associates(link is external). She has found four factors influence their decision: finances, family circumstances, home, and community or neighborhood.

“If they’re the primary caregivers or helping with grandchildren or single parents, they may be tethered to family and a location. Sometimes their decision, if budget permits, will mean a second location for the winter or summer,” Cook says.

While the 65-or-older segment now represents an important 15% of the population, it’s been described as being on the verge of becoming a “silver tsunami,”(link is external) with numbers growing beyond 20% by 2050. Here are some options your boomer clients may want to consider as they weigh their next move.

Aging in Place Vs. Moving to Meet Changing Needs

Eighty percent of homeowners aged 50 and above want to spend their upcoming years in their current home, according to a 2018 AARP survey.(link is external) The good news is that there are increasing design options and experts to help.

Certified Aging-in-Place Specialists, (link is external)a designation from the National Association of Home Builders, can offer insight on which features to modify in existing quarters to make life more convenient and safe. This includes adding smart-home technology, task lighting, grab bars, raised toilet seats, a shower without a threshold, wider doorways, and barrier-free entry.

When a bicycle accident left her paralyzed from the waist down in 1998, Rosemarie Rossetti, Ph.D., became an expert in how to adapt a home for accessible living. She and her husband built a home in Columbus, Ohio, which became the Universal Design Living Laboratory(link is external), with every universal design feature available.

Companies like The Plan Collection(link is external) design layouts that homeowners can buy online to build a home that makes staying put easier. The layouts include features such as an open plan without doors, one-level living, and flexible space to accommodate either working from home or the presence of guests, says Laurel Vernazza, the company’s home design expert. The flexible space could also house a live-in aide.

Other  technology tools can improve daily living for those less mobile or with impaired hearing or eyesight. Robot vacuums and smart lawnmowers are cited in senior expert Lisa Cini’s book, BOOM: The Baby Boomers Guide to Leveraging Technology(link is external).

Choosing an Active-Aging Community or Building

Despite active-aging communities generating buzz, those who gravitate toward them still represent a small percentage of the boomer population. “It seems bigger because the boomer group is large, but it’s still a very small percentage,” says architect David Banta, senior living and affordable housing sector leader at BKV Group,(link is external) who has focused on this niche for more than 20 years.

The average age at move-in is 75, Banta says, the extreme end of the boomer cohort. “Most do so to gain low-maintenance, convenient living. They want out of their big house with some services provided and no restrictions on when they come and go, especially since some still work,” he says.

The main difference between what’s available now versus 10 to 20 years ago is the greater variety in building type and what’s offered inside, such as resort-quality amenities, programmed activities, upgraded finishes, and technology.

Besides the traditional communities and stand-alone buildings, there are also co-housing communities(link is external) and rentals for those who no longer want to own and manage their home, says Berg, whose company helped develop Cellars at Pearl, a luxury property in San Antonio(link is external), nestled next to a five-star hotel and food vendors.

The common denominator is that boomers want to enjoy experiences that reflect their special interests and help build social connections, Cook says. “Forget crafts and woodworking, however,” she says. “This group has added 20 years to their life expectancy and are not at the end of their lives. They’re in their 70s enjoying wine tastings, pickleball, and bocce ball,” she says.

When it comes to cost, many boomers will spend the same or more to gain these features, including name-brand appliances for reliability, Cook says.

Besides designing new buildings, firms like Banta’s also work with clients to reposition existing properties by freshening finishes, reworking common areas, and adding the latest amenities.

When to Consider a Continuing Care Retirement Community

Generally developed for the cohort older than boomers, continuing care retirement communities are comprised of independent living, assisted living, memory care, and skilled nursing care wings. But these facilities are also undergoing changes to reflect the coming wave of boomers and their mindset.

“The previous generation has been fiscally more conservative and had the attitude, ‘How little could you sell me,’ while the boomers are all about choice,” Berg says.

Currently, there are about 2,000 CCRCs in the U.S., but their numbers are not growing, in part because of the difficulty of finding good locations, says developer Richard Ackerman, senior managing principal of Beverly Hills, Calif.–based Big Rock Partners(link is external), a real estate development and investment firm focused on senior housing. While firms like his continue to develop new communities, they also update existing projects, so they appeal more to boomers’ evolving tastes and desire for options. Many operators seek expansion to leverage the overhead of these investments across multiple communities, Berg says.

Another reason for the lack of growth is that the average age at move-in is rising, currently at 81, according to the Aging with Freedom site. Of the different CCRC options, independent living represents the biggest share at 55.6% of CCRC units(link is external).

No matter the age at which residents move in, their shared goal is to be less dependent on family but live near them, retain autonomy, and have options to socialize, which, Berg says, helps residents live longer and better. “All move in as strangers and adapt. Most end up saying, ‘I wish I had done this sooner,’ ” he says.

CCRCs are evolving in ways similar to the active-aging sector, with a greater focus on technology, programming, fitness, and entertainment. There are even more eating options. “They might want to stop at a cafe or bistro to eat, pick up sandwiches to sit in front of a TV, or dine formally. They don’t want to be told when to show up at one place for meals or one time for an activity,” Berg says.

When they eat, there’s increased concern about the nutrition of available food, along with additional interest in other wellness initiatives, says Ackerman. More attention is paid to the layout and design of communities to encourage socialization and help curtail loneliness.

New projects such as Big Rock’s Seafields at Kiawah Island in South Carolina(link is external) are designed to attract a younger, 62-plus age group who are more fit and affluent, while still supporting inevitable aging needs.

Seafields will have an in-house medical clinic operated by the Medical University of South Carolina when it opens in 2024. Its 90 units will target the younger residents who seek independent living while an additional 16 units are for assisted living and continuing care services. As part of the trend toward luxury, units will be larger and will have upgraded finishes, plenty of light, and outdoor space. Staff will include a lifestyle director and 24-hour concierge.

Another example of the movement toward luxury among CCRC communities is River Tower(link is external), a 142-unit expansion that Berg’s firm worked on at Harbor’s Edge, a high-end senior living community in Norfolk, Va., where custom interior designs are available in residential units. While Harbor Edge’s focus is independent living in a contemporary, sociable community, it, too, offers continuum-of-care services.

And Berg’s firm is also working on multiple projects with Dallas-based nonprofit Forefront Living(link is external), a developer and operator of senior communities. The work includes repositioning and expanding Forefront’s Presbyterian Village North, which offers a continuum of care, says Barbara Matamoros, corporate director of sales and marketing. “Presbyterian Village has a 41-year history of providing senior living, and through the years how we choose to live has changed,” Matamoros says. Among changes are larger living spaces with room for flexible, multiple uses, she says. In addition, services such as assisted living can be provided in a residential environment to keep residents from moving to a nursing home setting.

Not Segregating by Age

While all these changes are occurring in senior living residences, developers are learning that not everyone wants to be segregated by age. The former Chicago Tribune newspaper tower was converted into condos and renamed Tribune Tower Residences.(link is external) It has a prime location on Michigan Avenue and stellar views that appeal to residents of a mix of ages, says Cook.

The Azure at Hacienda Lakes(link is external) community in Naples, Fla., developed by Toll Brothers, is a master-planned community—also not age restricted—but targeted at the empty nester and downsizing active boomer.

Sometimes, plans need to change, as was the case when the developer of the “agrihood” Serenbe outside Atlanta(link is external) found that a cluster of houses planned for the boomer cohort didn’t appeal to that group. They revised the grouping for a mix of ages and are now planning an assisted living facility for a different, older population, says Garnie Nygren, managing partner of Serenbe.

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Still don’t understand the National Flood Insurance Program’s new pricing methodology? Get an update from NAR’s Insurance Committee chair.

There’s still confusion around the National Flood Insurance Program’s new pricing methodology called Risk Rating 2.0: Equity in Action, which went into effect in October 2021. Cyndee Haydon, chair of the National Association of REALTORS®’ Insurance Committee and a broker-associate at Future Home Realty in Tampa, Fla., offers an update on what you need to know.

Q: What Is Risk Rating 2.0?

A: When developing flood insurance prices, the NFIP now rates each home individually—rather than by zone—using modern technologies, multiple flood risk variables and property-specific characteristics, including elevation, distance to water and cost to rebuild. A third of flood insurance policyholders are paying a full-risk rate while others are paying a subsidized rate that is gradually increasing to full risk over time. The new methodology does not affect flood mapping or the federal mandate to purchase flood insurance.

What’s Happening Now?

All NFIP policies have transitioned to Risk Rating 2.0 as of May 1, and there have been no reports of delays or disruptions to home sales. In fact, Risk Rating 2.0 can help real estate pros build trust with clients because it helps buyers understand the true actuarial rate over time before they purchase. The rollout of Risk Rating 2.0 has been surprisingly smooth, considering it’s the first major update to NFIP pricing in 50 years.

Why Were These Changes Needed?

After the passage of the Biggert-Waters Act in 2012, REALTORS® uncovered many problems with the previous flood insurance rating methodology, which had not been updated in a half-century. Risk Rating 2.0 was established as a result and provided much needed updates based on actuarial risk, science and common sense.

Here’s one example: Under the old methodology, an NAR member was quoted an annual rate of $87,000 for flood insurance on a $300,000 home. NAR asked FEMA and independent actuaries how the rate could be so high for the property, a modest home that never flooded, and no one could explain it. Under Risk Rating 2.0, FEMA now uses science to cap the maximum possible NFIP rate at $12,125 per year, which only a few high-value, high-risk property owners would pay. For that same $300,000 home, flood insurance now costs only $1,247 under the new rating system.

Because pricing in the old methodology was based on national flood zones, older and low-value properties subsidized new, high-value properties. NAR’s Insurance Committee collaborated with FEMA and funded an independent actuarial study to help propose a solution. As a result, Risk Rating 2.0 ensures that each property owner pays for only their own individual risk and no one else’s.

Risk Rating 2.0 also provides consumers with full disclosure on flood insurance rates. After the Biggert-Waters Act, I helped clients whose rates jumped over $10,000—and they were required to pay it in one lump sum after buying a home. Believe me, you don’t ever want to have to take calls like this from former clients. I didn’t sleep until Congress rolled back and put the rates on a glidepath with the Flood Affordability Act of 2014, which, unfortunately, was only a temporary measure. Risk Rating 2.0 provides a permanent solution, giving new NFIP policyholders the science-based, actuarially sound, full-risk flood insurance rates upfront before they purchase.

Why Do Some Say NFIP Rates Have Doubled or Tripled?

Rates have not doubled or tripled anywhere in the United States. Some media reports are taking out of context a FEMA projection of what the average full risk rate might look like given today’s conditions.  However, those are not actual rates paid by two-thirds of policyholders, and by law, rates cannot increase more than 18% per year.  Also, flood risk is dynamic: Many factors can impact the current projection, including future changes in climate, inflation and the policyholder population. What FEMA data shows is: 1) most policyholders are not paying a full-risk rate and 2) it will take at least five to 10 years before they do if all things stay the same. Here is the actual 2023 NFIP rate data.(link is external)

What’s Next?

Now that Risk Rating 2.0 is in place, NAR’s Insurance Committee is turning its attention to other priorities, including:

• NFIP reauthorization. Congress has passed two dozen short-term extensions while continuing to debate meaningful, bipartisan reforms for accurate mapping, affordability through risk mitigation and private flood insurance options. REALTORS® are urging Congress to pass a long-term reform and reauthorization measure that brings stability to real estate markets.
• Climate financial risk. Risk Rating 2.0 is only one example of a federal agency complying with an executive order to underwrite climate risk. Other federal agencies are currently evaluating their exposure to climate risk, which could have significant implications for federal mortgage loan programs, including Fannie Mae and Freddie Mac.
• Hazard Insurance. Most insurance policies cover typical disasters except floods and earthquakes. Rising costs are the number one insurance-related issue in many states, including Florida and Louisiana, and NAR’s Insurance Committee is working to develop a handbook to educate consumers.

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Since the pandemic began, more homeowners have been adding plants inside their homes—a closer tie to the outdoors after being cooped up indoors more. Studies have suggested that the extra houseplants are making people better at their jobs and happier too.

A recent study conducted by Cinch Home Services, a home warranty firm, found that people with five or more houseplants are more likely to indicate feeling satisfied with their jobs, productivity, happiness, and creativity.

“Bolstered by the pandemic—and being stuck inside more than they were used to—many people reported buying even more houseplants in the last 18 months, possibly to the point of having to hide their purchases from their significant others,” researchers note in the Cinch Home Services study. “Still, people we polled reported being happier and more creative and content with their jobs when they had five or more houseplants, so it’s possible the more green you have in your home the better.”

The average person owns about five houseplants, according to the survey of about 1,000 respondents. Highly extroverted people tend to own more—6.8 houseplants, on average.

The most popular reasons to add plants: to have greenery (56%), for aesthetics and decor (51%), as a hobby (43%), to boost their mood (43%), to reduce stress and increase relaxation (35%), and to improve air quality (35%).

In fact, certain houseplants tend to be linked to certain personality traits, the survey found. For example, people who scored higher in neuroticism were the most likely to be associated with the fiddle leaf fig plant(link is external). The plant has the reputation of being one of the most difficult plants to keep alive indoors.

On the other hand, people who tended to score higher in agreeableness and conscientiousness were more likely to have English ivy. Those who tend to score higher on openness within their personalities tend to gravitate toward succulents, cacti, and spider plants, the survey found.

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Classic white remains the most popular color choice in kitchens, but homeowners continue to experiment with wider palettes for that room and other areas of the home.

“With white kitchens, there’s never a risk of looking dated in a few years, while the sleek minimalistic feel is effortlessly complemented by dark counters or contrasting kitchen accessories,” says Living Cozy, a home design resource, which analyzed global search data about design over the last 12 months.

White also ranked in the three most popular for several rooms in the house that might “benefit from the illusion of more space,” such as pantries, home offices, and laundry rooms, according to the study.

Green is becoming a more common choice in kitchens, ranking second. It has emerged as one of the trendiest colors of 2022 and also ranks within the top three for all interior areas to redecorate in. Shades of sage, olive, and jade are trending, the study shows.

Blue is the third most popular kitchen color of 2022, including shades of teal, turquoise, and light blue.

An unexpected color is making more headway in bedroom design: black, according to the Living Cozy study that tracked Google searches. 2022 is seeing a rise in popularity in black-painted bedrooms, including shades of charcoal and dark gray.

In the bathroom, black colors reigned again. In more than 2.2 million worldwide Google searches for bathroom colors in 2021, black was the clear winner, according to Living Cozy.

“Black bathroom ideas are stylish, modern, and chic, and are taking over the traditional chrome and gold colors that have dominated bathroom design for years,” the researchers note. “Bathrooms in 2022 incorporate dark black design elements through fixtures, feature walls, and flooring.”

In the living room, green is trending, according to the study. “Using green in your living room design can be the perfect way to bring an essence of nature indoors without the need for plants,” the designers note. “Layering different shades of green works best, from incorporating dark hues to featuring light pistachio shades.”

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Cash-strapped clients need guidance on choosing a loan that meets their needs. Know the different types they’ll likely be interested in.

Real estate pros need to stop focusing on higher interest rates and return to the basics of business—and brokers need to help steer that ship, Peter West, broker-partner of Bishop West Real Estate in Venice, Fla., said Monday at the Idea Exchange Council for Brokers Forum during the 2023 REALTORS® Legislative Meetings(link is external) in Washington, D.C. “We’re living in the past, and sure, if you’ve only sold real estate for two to four years, then yes, this feels like a catastrophe,” he said. “But that’s not the case.”

He noted that ultra-low interest rates during the Great Recession and the years that followed won’t be coming back—nor should they. The fact that low- and no-interest mortgages existed for so long distorted perceptions both on the consumer side and on the professional side, and that’s made it difficult for newer agents, West added.

The reality, however, is that most consumers are going with the flow, and brokers should take note, pass the word along and make sure their agents are educated on how to guide their clients in the right direction. That means getting familiar and more comfortable with mortgage products and incentives.

“Recently, on a house in Massachusetts, I had 20 offers. Nineteen of those offers were financed,” West said. Financing, he reiterated, is not going anywhere, and though cash offers might have reigned from 2020 through 2022, financing makes homeownership a reality for most buyers.

Inventory poses the biggest threat to the real estate business, West said. In Sarasota County, Fla., where West is based, the market only has two months of inventory. In Massachusetts, where he used to operate full-time, only 1.5 months of inventory is currently available.

Loan Products

Getting people into homes in a timely manner means understanding the various mortgage options and incentives available. Now is the time to refamiliarize agents with products like FHA, USDA and VA loans. It’s important to know that FHA loans aren’t just for first-time home buyers, USDA loans often have a zero-percent interest rate and VA loans work for anyone who has served in the military—whether they’re active duty, retired or discharged—so long as they weren’t AWOL or discharged dishonorably.

These loan products open up the market to a wider audience, letting more home buyers into the fold. They’ve also been the norm for decades, West said. So, brokers should make sure they and their agents understand and are willing to work with these products.

Adjustable-Rate Mortgages

These loans were thought to be a thing of the past when mortgage rates were at their lowest. Few borrowers were willing to risk their mortgage rate going up when rates had hit bottom to begin with. But that has since changed: In a market where rates are on the rise, adjustable-rate mortgages offer a solution for those who are experiencing barriers to entry in the housing market.

Mortgage Interest Deductions

This once-popular tax incentive is about to make a comeback—and so might your calculator, West says. There was a point in time when agents and brokers were regularly helping clients figure out what their mortgage interest deductions would amount to come tax time. No need to actually break out a calculator nowadays, though, since Bankrate.com will help you calculate these figures(link is external) with your client.

Interest Rate Buydowns

Temporarily lowering the interest rate through a buydown is another way to save clients money. So, brokers should be learning about this option and educating their agents. It’s important to remember that “America buys on payments,” West said, adding that real estate pros should be talking to their clients in terms of the monthly payments they’ll be making. Despite higher interest rates and home prices, if your clients can afford the monthly payment, they’re likely not too concerned about the interest rate, he said. For that reason, the real estate industry should stop demonizing interest rates and talk more about the various ways clients can manage a mortgage payment.

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Simple kitchen and bath improvements can leave home shoppers swooning over a listing, according to a new study by Knock, a site about homeownership.

Homes are selling fast, but certain home updates can help them sell even faster. An updated home can sell an average of 30% faster than a home without improvements, the analysis shows.

Knock compared the average days on the market for homes that are updated before being listed with those that sellers leave as is. It pinpointed which home updates tend to result in the fastest sales.

“Getting a home ready for sale can be a stressful experience, and the supply chain constraints and contractor backlogs brought on by the pandemic have made it even more difficult to get work done,” says Sean Black, co-founder of Knock. “Three years ago, homeowners had to put a lot more work into their home before listing it. However, even in the current market with homes selling in record time, the data continues to support the benefits of getting your home show-ready.”

Knock was selected for the 2021 REACH class, a technology accelerator program through Second Century Ventures, the strategic investment arm of the National Association of REALTORS®.

Homes with modern renovations sold in an average of eight days, compared with an average of 12 days without improvements. Homes with two or more improvements sold in an average of six days, according to Knock.

The most common home improvement: interior and exterior paint. Seventy percent of sellers painted their walls, spending an average of $3,500.

But freshly painted kitchen cabinets, which cost an average of about $1,319, really help buyers fall in love with a house, the study shows.

Here are the updates that consumers say they most loved about a house.

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