June 16, 2006

Survey: Baby boomers own 57% of all second homes, but 75% not prepared for retirement

HP survey reaction: The baby boomer generation was the greediest, most self-centered generation in the history of mankind. Period. And they're heading for some awful reality now that they've spent all the money.

Yes, there are many wonderful, decent baby boomers who rejected the me-first, over-consumption, debt-fueled, screw-the-next-generation mentality of the majority and their leaders, although I don't believe history will be kind to this generation as a whole.

Especially when in comparison to the Greatest Generation. And especially when they're out looking for (even more) government handouts as the housing market and stock market collapse.

Get ready for some serious generational warfare. And some serious baby boomer strife. I'm not sure how we, or they, dig ourselves out of the problems they have caused.

Though the baby-boomer market remains a significant source of buyers for Realtors and builders, David Lereah, the association's chief economist, said marketing to this generation has been and can be a challenge.

While boomers appear to have "an almost insatiable desire" for real estate, many have not adequately planned for retirement, Lereah said.

"What should not be overlooked are the discretionary spending interests of this generation, and their appreciation of housing as a great investment," he said.

A Realtors association analysis shows baby boomers are proportionately more active in the second-home market, owning 57 percent of all vacation/seasonal homes and 58 percent of rental property.

Only 29 percent of the boomers surveyed said they were not at all likely to work after getting Social Security benefits, while three in four said they are not financially prepared for retirement.

27 comments:

mr. smith said...

The baby boomer generation was the greediest, most self-centered generation in the history of mankind. Period.

This is BS.

The term "baby boomer" is just a media/academic creation and certainly can't be used to crucify 80 million people who live vastly different lives, ie the "boomers" who were born in 1946 are a whole different group than the "boomers" born in 1962.

The "greatest generation" had very very little in Social Security obligations to their parents. And in return they became the famous "triple dippers"- having triple pensions from social security, workplace, and military.

The "boomers" have been working thier asses off to support both their children and their elders. The average yearly deduction from a "boomer" paycheck is around $5,000 to pay for the SS/medicare system- multiply that by a 50-year working life. And now they will be facing older years without much pension at all.

This whole "baby boomer" resentment campaign smells like a conservative media production that is targeted toward discrediting the 60s culture.

Go Rush go.

Friday, June 16, 2006 12:22:56 PM

Richard said...

And the X'ers are less greedy and self centered - guve me a break.

Keith - read (or re read) Catton's book Overshoot.

Greed and uncontrolled population growth gave been around for quite a while.

This thread is complete bullshit - BTW I'm an x'er

Your kids and mine will be mining landfills because of all the previous generation's greed.

Anonymous said...

mr. smith said...
The baby boomer generation was the greediest, most self-centered generation in the history of mankind. Period.

This is BS.

The term "baby boomer" is just a media/academic creation and certainly can't be used to crucify 80 million people who live vastly different lives, ie the "boomers" who were born in 1946 are a whole different group than the "boomers" born in 1962.

The "greatest generation" had very very little in Social Security obligations to their parents. And in return they became the famous "triple dippers"- having triple pensions from social security, workplace, and military.

The "boomers" have been working thier asses off to support both their children and their elders. The average yearly deduction from a "boomer" paycheck is around $5,000 to pay for the SS/medicare system- multiply that by a 50-year working life. And now they will be facing older years without much pension at all.

This whole "baby boomer" resentment campaign smells like a conservative media production that is targeted toward discrediting the 60s culture.

Go Rush go.

Right on.Blame a particular group,somebody else.Give em something to hate!Kinda like Hitler and the Jews.

Anonymous said...

I'm a Gen Xer, lets get that out front.

I don't think that most people dislike the average baby boomer. Most are hard working and want what's best for their family. Both of my parents were fantastic. I do believe that most Gen Xers blame the 60's hippy / socialist types for destroying american education and making political correctness more important than personal character.

As for the housing boom/bust, the baby boomers and Gen X are equally responsible. Baby boomers own more second homes because they have more money. This could just as easily be Gen X and Gen Y in twenty more years.

mr smith said...

The media portrays boomers as greedy lard-asses who drive SUVs and live in highly-mortgaged Mcmansions. Great stereotype but is it accurate or just a good media story?

Most boomers that I know do not fit that mold.

As a boomer, I have no debt and save upwards of 25% of income. I drive 20 year old Toyotas which I enjoy doing the repair work on. Likewise, my house is a 1500sf ranch which was bought as a fixup project in which I do all the work myself. It is heated with wood which I cut from my own property.

These media slogans and images just don't portray the reality of people's lives.

The Thinker said...

How can we characterize a generation? Isn’t the whole concept of discrete generations a fiction? Sure in a particular family there are generations but are there generations in society as a whole? People are born continuously every day, not in big clumps every 20 years or so. Therefore these characterizations of "baby boomers" "Gen-X'ers" etc have no real meaning. Surely over the past 100 years we have seen a shift in values and lifestyles. Perhaps we use terms like "generations" as a way to step back and look at how much things have changed over the years.

Lets not cast blame at poorly defined groups of people and let us articulate what we are really angry about. We are angry that over the past 50 years Government has been mortgaging our future to pay for a lavish lifestyle. But how can we blame our leaders for charging up public entitlements and pork on Uncle Sam's VISA GOLD card when we, as an electorate, have shown that we are only willing to elect those who bring home the bacon? Is this why we blame our parent's generation? Because they voted for the leaders who mortgaged our country's future prosperity for pork and a welfare state? Well don't be so quick to judge, because from where I stand, the 30 and 40-something Americans seem to vote along the same lines.

So lets stop the blame game and come to grips with the fact that until we are ready to elect officials that will serve us the tough medicine of fiscal and environmental responsibility we will condemn ourselves to oblivion with only the hope of staving off disaster till the next "generation."

Anonymous said...

I am a generation X, raised by a greatest generation grandmother (1915), and a family of WWII vets. Baby Boomers are vastly different than the greatest generation. Add to your list the fatest generation in American history. Old people use to be skinny, not this generation. Also, old people were not preoccupied with sex, not this generation of old people. Old people did not trust Wall Street Casino, not this generation of old people. I learned from the greatest generation and respected them. This disco boomer entitlement generation makes me sick. I learned from the greatest generation to have your house paid for and drive an economy car, put your money in government bonds, silver, and gold; and, own your own gun. Prepare for the future and know that you will get old and die; and, leave something for the next generation. Someone needs to tell Boomers that they are old. 60 is NOT the new 40, and other such lies. I am glad that I was not raised by Boomers.

Tom said...

Generation: A group of generally contemporaneous individuals regarded as having common cultural or social characteristics and attitudes.

Culture: the customary beliefs, social forms, and material traits of a racial, religious, or social group.

Anonymous said...

every generation or group of people can be generalized by the behaviour of its majority, and the baby boomers too.

the majority of baby boomers give the generation the bad rap it deserves, even though there are many in the group who are the opposite of the majority

like americans today getting a bad rap for the bible-thumping closed minded hate monger dimwits in control

Mark in San Diego said...

It wasn't rocket science to retire at 55

Yes I am a boomer, but like anonymous, was raised by depression era parents and grandparents. . .I ALWAYS lived below my means, and saved money, because my conservative (not necessarily political conservative) Ohio family always saved money to buy something and distrusted credit. I didn't go for broke on internet stocks, but bought nice safe boring dividend stocks and boring bonds. What I really dislike about many of my boomer contemporaries is the "get rich quick" mentality - internet stocks, real estate, gold (sorry Keith), emerging markets. . .they are like lemmings and follow the crowd. I DO hope generation X pulls the plug on the huge benefits for the boomers. . .do people need drug benefits for Viagra?????

Anonymous said...

Baby Boomers: the new Osama.

Even if only 5% of the people born between 1946 and 1962 were decent human beings, Do you realize how many people that would be who are both willing to help and experienced?? Or maybe everything is going so well, there is no need for allies?

Please don't fall for yet another media campaign to marginalize, divide and conquer. Hang together? or hang separately?

Anonymous said...

"Survey: Baby boomers own 57% of all second homes, but 75% not prepared for retirement"

This is not nearly as newsworthy a statement as it seems to be, boomers are aged around 45-60 and in their top earning years so they are most equipped to own a scond home, compared to any other generations.

As far as 75 percent not being ready for retirement, you know what, they won't retire until they are ready, period. I don't know if my father ever seriously thought he could retire at 57 but he worked until he was 69, not saying he liked it, but had no other choice so he did it, so will many baby boomers.

foobeca said...

I'm an X'er. Of the boomers, X'er's and Y's, I would have to say that the X's have the least amount of negative traits with the Y's being the worst.

The Y's take overconsumption and indebtedness to a whole new level. They believe they're entitled to everything. Even more so than the boomers. They feel entitled to have an Acura/Infiniti/Lexus/Cadillac/Audi, have ipods, and own 50 condos or McMansions.

It's primarily been the boomers and the Y'ers that have caused the housing bubble. On the one hand you have the 19 year old mortgage broker or the 18 year old flipper who owns 50 condos. And then you have the boomer who thinks that 1 house isn't enough and that a "vacation" home is a good investment and will pay for retirement.

The X'ers are basically hard working people who are raising families in modest homes with modest cars.

The "greatest generation" is the generation that gave us socialist stupidity and changed the way the government works forever. They also gave themselves Mediscare later on.

Mr. Smith, the average boomer has NOT paid $5000/year in FICA every year for 50 years. That may be the case TODAY, but not over the last 50 years. The boomers haven't even been working for 50 years either.

foobeca said...

I'm looking forward to seeing a lot of boomers working as greeters at wally world. The boomers will not, in essence, receive socialist stupidity. Understated inflation as measured by the CPI, will gradually dilute the value of their SS checks so as to almost make them worthless.

I'm not going to sponser a boomer's retirement by buying an overpriced POS house either.

Anonymous said...

"I'm an X'er.... The X'ers are basically hard working people who are raising families in modest homes with modest cars. "

Oh please... speak for yourself.

douglasbtrain said...

This post is great. It reveals the fantasy of our economy. First, owing a second home is lunacy. It's a sinkhole for money. Second, no one saves enough for retirement. Gee, maybe you shouldn't have bought that second home and should retire in the modest house you paid off. Oops! Taxes are going to go through the roof. Without pensions and healthcare provided by employer based retirement programs, the government is going to have to provide pensions and healthcare.

douglasbtrain said...

" . . . owing a second home is lunacy"

Best typo ever.

Anonymous said...

Somewhere along the way, we seem to have lost the frugal, sensible economics sense that got us where we are today. Consume, consume, consume, keep up with the Jones', Rosenthals and Kwans. C'mon.

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