Posts Tagged ‘baby boomer’

Senior Home Equity Hits All-Time High

Posted on August 03, 2017 by Laura Lam

Senior homeowners saw an increase in their home equity in the first quarter of 2017, according to a report from the National Reverse Mortgage Lenders Association (NRMLA).  The report showed homeowners aged 62 and older saw their home equity increase by 3.1% to $6.3 trillion in the first quarter. This is up from $6.13 trillion from the fourth quarter. This growth in housing wealth for seniors was driven by an estimated 2.6%, or $199.3 billion, increase in senior home values, and was offset by a 0.6% increase in senior-held mortgage debt which totaled $9.2 billion. The NRMLA/RiskSpan Reverse Mortgage Market Index, a…

Retirees Will Influence Future Consumer Spending

Posted on March 15, 2017 by Laura Lam

Major demographic shifts over the next decade will have a dramatic affect on U.S. consumer spending – which in turn will influence the overall economy, specific industry sectors and individual stocks, according to a new report.  Population growth will be uneven, favoring the South and West as retirees migrate to the Sunbelt in search of warm climates and lower taxes.  This shift in population could affect public sector spending and municipal bond markets. The Conference Board report, “The Impact of Demographic Trends on Consumer Spending,” examines the size and age distribution of the future population, how spending patterns will change…

The Richest Generation Keeps Getting Richer

Posted on August 31, 2016 by Laura Lam

Baby boomers started turning 65 in 2011, marking the unofficial beginning of their retirement years. The timing could not have been better for older boomers, who are already part of the wealthiest generation in U.S. history. Since then, the broad S&P 500-stock index is up 91%. Market performance in the early years of retirement is a crucial worry for anyone living off a nest egg. In the worst-case scenario, stocks crash just as retirees start spending their savings, leaving them in a hole they can no longer earn their way out of.  But older boomers have experienced what is arguably the best-case…

The Link Between Education and Homeownership

Posted on June 10, 2016 by Laura Lam

A new report from First American Financial Corp. has found that the difference in homeownership between those without high school degrees and those with a bachelor’s degree or more is widening. In 2015, that gap was 28%, nearly twice the 15% gap reported in 1990. “People with higher education levels are more likely to earn higher incomes, and thus more likely to own homes,” said First American chief economist Mark Fleming.  “The good news is that educational attainment levels are improving nationally, so we are on the right track.” Education levels are rising as more millennials are graduating from college…

Multifamily Outlook: Rent Growth to Remain High

Posted on June 09, 2016 by Laura Lam

A new national market outlook from Yardi® Matrix forecasts that jobs and population growth will spur rent growth of about 5% in 2016.  The report, “Multifamily Votes for ‘More of the Same,’” predicts that long-term demographic forces in population growth, employment and demographic trends bode well for continued rent growth. The report predicts growth in 2016 will trail the 6.3% rate recorded in 2015 due to such factors as stock market volatility, depressed oil prices and weak economic growth outside the U.S. The capital markets could also be a factor, with a record total volume of multifamily debt. Yardi Matrix…

No Rest for the Weary: More Americans Working Past 65

Posted on June 03, 2016 by Laura Lam

Almost 20% of Americans 65 and older are now working, according to the latest data from the U.S. Bureau of Labor Statistics. That’s the highest number of older people with a job since the early 1960s.  When asked to describe their plans for retirement, 27% said they will “keep working as long as possible,” a 2015 Federal Reserve study found. Another 12% said they don’t plan to retire at all.  Why are more people putting off retirement?  A recent Bloomberg article reveals 5 possible reasons. They need the money.  3 in 5 retirees surveyed by the Transamerica Center for Retirement Studies said making money…

Getting to Know You: What Banks Should Know About Millennials

Posted on May 31, 2016 by Laura Lam

Banks have a hard time figuring out millennials, those born between the early 1980s and 2000. Many millennials don’t remember a world without the Internet, plenty entered adulthood during the thick of the financial crisis and the generation is broadly considered one willing to vote with its feet. Banks are anxious to market to this demographic (and might be neglecting seniors in the process) and are eager to find out just what makes them tick.  Several firms have tried to demystify millennials for bankers. The following is a look at some of the data. 1. They Don’t See a Future…

Consumer Debt Rises with Age

Posted on March 03, 2016 by Laura Lam

Debt held by consumers in the U.S. as they age is rising, according to an analysis by the Federal Reserve Bank of New York.  From 2003 to 2015, debt of borrowers between ages 50 and 80 increased by approximately 60%, according to the Fed’s researchers. Researchers also found that aggregate debt of younger borrowers declined modestly from 2003 to 2015 “with a debt portfolio reallocation away from credit card, auto, and mortgage debt, toward student debt.”  “This shifting of debt from younger to older borrowers is of obvious relevance to markets fueled by consumer credit. It is also relevant from a loan performance perspective…