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.
Advertisement
Related Stories
Hamlet Homes' Mike Brodsky on Finding Successors and Letting Go
A transition that involved a national executive search, an employee buyout, and Builder 20 group mentorship to save the deal
Time-Machine Lessons
We ask custom builders: If you could redo your first house or revisit the first years of running your business, what would you do differently?
Back Story: Green Gables Opens Up Every Aspect of its Design/Build Process to Clients
"You never want to get to the next phase and realize somebody's not happy."