New home lot supply drops to cycle lows
We often look at the barbell of demographics, the Millennials and Baby Boomers, in isolation, but their interconnectedness is just as important. How are these so-called Baby Chasers, which are the 25% of Baby Boomer planning to retire near their grandchildren, even if in another state, changing housing dynamics across the country?
To capture the overlap between Baby Boomer and Millennial migration patterns, we created the Meyers Baby Chaser Index. Our index considers longer-term migration patterns as well as current trends for both demographics. The index shows:
Baby Boomers are often looked at as moneybags, but affordability is a top factor for homebuyers regardless of age. For those leaving their current city, retirees are often looking to sell their home, relocate, and pocket some money. That success depends on where they are coming from. In our top Baby Chaser market, Charlotte, for example, Rust Belt state relocators more frequently enter with less equity than those from New York. That’s why it is important to measure not only where people are moving to but also where they are coming from.
Tim Sullivan, Senior Managing Principal
Across the country, we are seeing Baby Chasers scoop up homes adjacent to family-friendly locations. A great example of this is Lancaster County in Charlotte. Lancaster County is part of the greater Charlotte CBSA but is across the state line in South Carolina.
Shaun McCutcheon, Senior Manager, Advisory
Lancaster County is attracting Baby Boomers for many reasons:
Tree Tops by Lennar is a well-positioned active adult community that is the best-selling in the county. The gated community offers outdoor amenities with 19 different ranch-style floorplans and prices ranging from $264,000 to over $460,000.
Source: Tree Tops by Lennar
From our research, here are the top three things we’ve observed from Baby Chasers:
Thanks to technology and programs like FaceTime, moving to see grandkids grow up isn’t the only option anymore. But those looking to move to the same town as their adult children often have specific needs.