Last month, I attended NAHB’s midyear meeting in Miami and had the pleasure of sitting in on a presentation by Daniel Swift, president and CEO of Des Moines-based architecture group BSB Design.
Limits To Boomer Wealth
Net worth among the baby boom generation has grown substantially, but it may not be enough to get them through retirement without Social Security and pension plans.
A recent study by American Association of Retired Persons shows net worth among the baby boom generation has grown substantially in recent years, but may not be enough to get them through retirement without Social Security and pension plans.
The AARP study, "The Distribution of Financial Wealth Among Boomers," found that median net worth among boomers increased from $36,000 in 1989 to more than $107,000 in 2001. Counting home equity, net worth exploded from $140,000 to $400,000 for the period.
A second AARP study, "Inequality of Financial Wealth Among Boomers," shows wealth is now more concentrated in the highest income brackets than in the late 1980s. The top 1% holds a greater share of net worth than the bottom 80%, and almost as much as the bottom 90%.
The two studies confirm that builders of active adult and retirement housing should target the most affluent buyers - but also that a huge market may be forming for affordable retirement housing.