It’s often argued that retiring baby boomers, those born between 1945 and 1964, are slated to have a significant impact on the housing market.
This is because they tend to downsize their homes on retirement. Though the extent of this trend is unclear.
“Investors leveraging demographic trends will often be able to amplify rental returns and home price appreciation, particularly when it comes to trends in the baby boomer and millennial generations, which combined account for approximately 147 million people — more than 60 per cent of the U.S. adult population,” RealtyTrac’s Daren Blomquist said in a press release.
With that in mind, RealtyTrac identified the best rental markets for baby boomers.
The markets they identified all had a 10% or more increase in the baby boomer population between 2007 and 2013. And they had a baby boomer population that accounted for 24% of the population. The top 25 baby boomer rental markets saw annual gross rental yields from 5.50% to 20.93%.
Rental returns were based on gross rental yield: “the average fair market rent of three-bedroom homes in the county, annualized, and divided by the median sales price of residential properties in the county.”
The top five markets for boomers based on annual gross rental yield were all located in Florida:
1. Pasco County, Florida: 20.93%
2. Hernando County, Florida: 19.06%
3. Marion County, Florida: 16.96%
4. Citrus County, Florida: 16.43%
5. Polk County, Florida: 14.59%
Here’s a great interactive map from RealtyTrac:
Note: “For the report RealtyTrac analysed median sales prices for residential property and average fair market rents for three bedroom properties in 370 U.S. counties with a combined population of 186 million people — 60 per cent of the total U.S. population. Rental returns were calculated using annual gross rental yields: the average fair market rent of three-bedroom homes in the county, annualized, and divided by the median sales price of residential properties in the county.”
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