Why move away when you're already comfortable in your own home?
Forget what you know about retirees and how they choose to live. A new crop of Baby Boomers is shaking things up, and that means more dollars spent on home improvement than by any retirees in recent history.
What's causing the surge in renovations? It's a newer term with a simple definition: Aging in place. And it means just what it says. Here's how improving property values are helping to make it happen.
Home Remodeling Trends
Home remodeling has had its ups and downs. In the last 10 years or so, it's been more down than up, with a few surges here and there. Some spots on the timeline show an increase, which the National Association of Realtors© says can be traced back to home owners trying to boost value in a rapidly declining market.
But this new remodeling trend has nothing, or at least little, to do with improving value, and everything to do with function. In the long run, these improvements should help the next generation and the one after that. At least if what's trending today continues. And with people living longer and healthier lives, there's no reason why it shouldn't.
Staying put means you control everything about your home, including keeping what you love and changing what you don't.
Baby Boomers Don't Want to Leave
In short, Baby Boomers like things just fine where they are. After spending years or even decades in a home, the idea of leaving it for some retirement community or even the classic warmer climate isn't very appealing. People love their homes and want to stay there, but staying means that a few things need to change.
Much of the home renovation dollars that the market is enjoying are focused on accessibility. Aging in place means that needs will change. Climbing stairs to reach the master bedroom won't always be easy, so new, convenient master suites with an attached bath rank high on the priority list. Wider hallways, curbless showers and entryways with no steps also factor in.
Qualifying isn't necessarily easy, but it's within reach.
Higher Property Value Helps Finance the Dream
With higher property values, the Baby Boomers may have the cash that they need to fulfill the dream of aging in place. With a lower mortgage balance and a boost in the real estate market, there could be a lot of equity sitting there unused. A home equity loan, home equity line of credit, or a cash-out refi could build a bridge between the funds and the dream.
Accessing home equity isn't as easy as it used to be, but Baby Boomers may have lived in their homes for long enough to drastically reduce their mortgage notes. That means more equity. And Daily Finance says this generation averages about a 700 credit score, which is high enough for some of the most restrictive home equity requirements.
Home equity can finance a great number of things. Maybe it's repairs and upgrades to keep a house in great condition for years to come, or maybe it's improving accessibility to make living there more comfortable and less challenging.
If you're thinking about aging in place, eppraisal can provide you with an important piece of information - your estimated home value. With just a click of a button, you'll see what your home is worth. Click here for your free property valuation and learn whether it's time to tap into your home's equity.