By Jean Latham
Find out what’s trending right now in the second half of life trending in live, work, play, connect from the housing market and how it is impacting every generation, a pre-retiree phenomenon happening for 50+ individuals and summer vacation options.
Housing Market Trends
The housing market is experiencing some interesting twists in present day real estate. There aren’t enough houses and apartments for people to buy or rent. There are a number of reasons for the housing shortage and here are my thoughts on a few of the the challenges.
- Home builders haven’t been able to build at a pace that keeps up with demand and land development in major cities is limited.
- People who already own homes aren’t upsizing or downsizing, which limits the circulation of homes on the market. Historically post-retirees downsize into smaller houses as their children leave the nest which allows younger families with starter homes to expand into larger houses. In turn, this allows first-time homebuyers to buy starter homes that the younger families are moving out of.
The cycle of homeownership has slowed dramatically.
Baby boomers are not moving, particularly those who live alone in houses that could otherwise be home to multiple people. This limits the number of available homes for sale and those homes are subject to bidding wars causing the price of housing to rise as the inventory drops.
Boomers are staying in their houses longer for a number of reasons.
- They are living longer and more independently than previous generations.
- They are working longer, so they have the income to stay in a large house if they want to. Boomers are staying in the workforce in record numbers and feel they will have to work well beyond traditional retirement age as they cannot financially afford to retire.
- They are more likely to have adult children, college age students, grandchildren or possibly aging parent(s) living in their home.
- Additional factors impacting the real estate market is the sheer number of boomers who are moving into the older age demographics relative to previous generations. It is a huge age segment.
- The divorce rate is at an all time high in the 55+ age range creating what was once one household is now two households.
- Housing affordability is also creating challenges in the market Selling a home may result in a nice profit but finding a less expensive home to replace that housing without spending the bulk of their profit is equally difficult.
But with all of these factors the future of the housing market is not doomed and according to The Wall Street Journal it will rebound. Analysis of the market indicates two-thirds of every home will turn over by 2037. This selloff of the 21 million homes owned by boomers who will downsize, move into assisted living or will pass away will create more homes available to be sold. Further, it’s unlikely that the sale of such volume will cause what’s currently a housing shortage to turn into a housing surplus. Because of the broad age range Baby Boomers cover which is between 1946 and 1964 the selloff of boomer housing would be staggered over the course of 20 years or more AND would not cause a sudden meltdown that created the housing collapse in 2008.
Pre-Retiree Career Phenomenon
With the recent Covid-19 safer at home the Pre-Retiree phenomenon of leaving jobs sooner than expected has become a real concern for many 50+ aged employees.
Over 30 million Americans have now filed for unemployment benefits, according to the Labor Department and not surprisingly, the unemployment rate for workers age 55+is climbing, according to the AARP Public Policy Institute.
“Preretirees (approximately 50-65) are getting the wind kicked out of them right now,” Ken Dychtwald, founder and chief executive of Age Wave, a consulting and research company, and is the author of “What Retirees Want: A Holistic View of Life’s Third Age,” and estimates that 20% of older workers (over 50) are going to lose their jobs,”
One the many concerns this demographic has is the risk of losing their jobs and unable to find another, which can mean premature retirement.
There are a number of job boards to search for opportunities which are on the rise. Flexjobs.com, Sidehusl and Work at Home Vintage Employers (WAHVE), are sites for professionals 50+ who work from home. These popular job search venues for 50+ employee market provide for more flexible work options such as seeking part-time contract projects, working from home or working as a consultant.
If you have recently entered this new market or are concerned you may be downsized here are some tips to assist in finding other work opportunities.
- How strong is your business network? “Referred applicants are five times more likely than average to be hired, and 15 times more likely to be hired than applicants from a job board. ‘
- Keep in regular contact with your network to ensure you hear about potential upcoming opportunities Reach out to the people you used to work with. A strong network will help provide you with information, advice and referrals that you can use to improve how you position yourself for new opportunities.
- Contact past colleagues, vendors, suppliers including people who have retired.
- Build a robust LinkedIn profile. If you are unemployed, you have plenty of time to spend updating and polishing your LinkedIn profile. A solid LinkedIn profile and relevant/professional LinkedIn activities are the best “proof” of being up-to-date.
And remember your experience is priceless. Sell yourself, your experience and established expertise. Creating a new unplanned career can be scary, but do not overlook the value you bring to the table.
2020 Summer Vacations
How are American’s traveling this summer? Many travelers are opting for a different kind of getaway. There is definitely a different environment this summer when it comes to summer vacations as there are few key factors coming into play.
- Coronavirus – Specifically, a second wave of the virus is projected to possibly hit late summer/early fall. June is showing some states have increased in infections being reported.
- Civil unrest – While the protests have been mostly peaceful, there are safety concerns depending on where you are traveling.
- Economy Concerns – With unemployment at an all time high the recovery is in a fragile state and the future is anyone’s guess.
According to (OAAA)/Outdoor Advertising Association of America which is a trade association representing billboard advertisers, more than half of consumers (53%) plan to get away on a summer vacation. Over a quarter (26%) say they are afraid to travel for any reason in the near future, whether for work or leisure. So what does all of this mean for summer travel?
- Road trips are back in a big way this summer. 62% of consumers planning to travel by car for summer vacation — up 72% from last summer.
- Staying with friends and family. Hotels are opening cautiously but many people are concerned about the sanitization and safety and are opting to visit close family or friends.
- Be Aware of where you are traveling to and through. Is the community destination you are headed to welcome visitors and where do you stop along the way to your destination?
- Airbnb reservations are increasing. People are staying closer to home and opting to stay longer in one place. People with 2nd home are renting to those they know personally.
- RV/Rentals are up 650%. Allowing you control where you sleep, eat, who you are with and where you stop.
- Camping & the outdoors. State and National Parks are being flooded with guests but be beware of the community you are impacting. Many of the parks are located in less populated areas and those smaller communities may not be able to manage the influx of people in their communities.
- Car Rentals are on the rise. Getting to and from a destination if you live in metropolitan area requires personal transportation which not everyone has if you live in the city.
- Big Attractions and events are cautiously opening???? Disney is planning on opening mid July. MLB may start sometime this summer????
- Multi Generational Getaways. More families (Kid/Grandkids/Close Family & Friends) are traveling and staying together. If you have been missing your people what a novel way to reconnect!
- If you are flying…… Buy a plan with coverage for trip cancellation check the fine print) and check the cancellation policies. I recently lost a $150+ ticket due to not reading the obscure fine print that none of us read.
All airlines have instituted Covid-19 regs but hey, none of us are quite certain how this uncharted territory will roll. I myself, have a flight schedule later this summer, but read the cancellation policies and the sanitation and safety rules each airline follows.
It’s really pretty sImple, if you want to stay as safe as possible. Wear masks, avoid crowds, wash your hands, use hand sanitizer and use your best personal judgement. Do what is comfortable for you and by all means use your best mature decision making abilities & Stay safe and well.