How Changing Generations Impact the Second Home Market
Naples is a snowbird’s paradise. Many of our real estate sales are second home purchases. As a result, we rely on Baby Boomers to buy as they’re in the best position to have the time and income to own a second home. Many of them are ready to move up from a smaller home they already own in Naples to larger homes so they can spend more time here. Others are ready to buy their first second home here.
Buyers from up north are finding it’s not as easy to come to Florida and buy their second home.
Less Interest in the Suburbs
The problem occurs when it’s time to sell their home up north. For many Baby Boomers, that home was the big house in the suburbs where they raised a family. They bought their house for the big backyard, good schools, and access to all the extracurricular activities for their children.
At this point of their life, they’re ready to pass this property over to the next generation raising families.
Except things have changed in our culture. The majority of Generation X and older Millennials aren’t necessarily buying the large home in the suburbs anymore. They can’t see themselves raising a family in the sprawling suburban lifestyle anymore. Many Millennials are getting married later and later in life so many of those potential buyers are out of the equation. Although single home ownership is on the rise, it’s not enough to overtake the potential buyers who are waiting a little longer.
Living in the City
The younger generations value the proximity to all the fun city life. They want to be within walking distance to everything more than they want the big house and the long commute. Many people feel there’s nothing wrong raising their kids in the city and living in the condo. They can just jump on the train or Uber and in few minutes be at work instead of spending hours in traffic.
Large cities have changed a lot as well. To accommodate the growing trend of raising families in the city, there are more and more after-school activities for the kids right where their parents chose to live. Fewer people see the need to move out to the suburbs to create a better life for their children or offer them something of value away from the city. It’s all right there in their neighborhood in the middle of the city.
What It Means
What this means is that an entire generation of baby boomers that would love to move to Naples can’t. Many of them are sort of stuck with their big house in the suburbs which, in some cases, their own kids don’t want even for free. Does this mean that snowbirds will never be able to move down to Naples and buy a condo they love? Of course not. But the process may be slower and homes that sold so easily in the past few winters may take a little more time.
While Naples is its own real estate market with plenty of people moving in and around the area all the time, real estate shifts in other parts of the country can and will impact our area, especially if the Baby Boomer who wants to live in the warm weather of Florida can’t sell their home.
Are you ready to buy or sell your Naples home? We can help. Let’s talk!