WHAT’S THE BOOMERS GOT TO DO WITH IT?
What's the Boomers got to do with it? Everything! Over the next 19 years 10,000 Boomers will be retiring every day. Over the last 5 decades, every single business trend, economic trend, fashion trend, consumer trend, and environmental trend, have all been created by the Baby Boomer generation. Think about it, the rise of Gerber/baby food manufacturers, the toy manufacturers, designer blue jeans, Disney World, the 70’s real estate boom, and the incredible 15 year Bull Market on the stock exchange- all of these trends are attributed to the Boomer generation! Let’s take a closer look at what’s really happening with the four major generations in the United States:
In 2013, 8400 US Boomers turned 65 each day. That’s one Boomer turning 65 every 9 seconds! 78 million of those Boomers are already over 50 years old. One statistic reports that the Boomers average annual purchasing power is a staggering $3.4 trillion.
Our seniors - over 70 years old - own over 80% of all the monies in savings accounts and 70% of all U.S. assets. The Boomers will be the wealthiest generation ever because of their size (80 million) and what they will be inheriting from their parents - the seniors (69 million).
BOOM! BOOM! BOOM! “De Ja Vu”
The well heeled Boomers are coming back in a very big way. Our local real estate market is history repeating itself. It reminds me of what began 2002-2003 (10 years ago) at the beginning of our last appreciation cycle. The first six months of this year was a tide change and September has been one of our busiest months with many buyers scrambling to purchase the last good buys. If you closely examine our pending, closed sales and diminishing inventory in the 3rd quarter of 2013 you would probably agree, that the 4th quarter of 2013 and our high season, January - March of 2014, will turn into a rip tide in sales, as our desirable inventory continues to be gobbled up, and prices continue to rise. Our 2014 real estate market will turn into a solid sellers market. So buyers beware: time is running out because we will soon be saying, " goodbye to the good buys".
My family relocated from NY/CT in 1983 when our island had a year round population of approximately 6,000. Today that figure is close to 18,000 people year round and 40,000 - 45,000 during high season. The population growth for our surrounding areas is projected to explode over the next 15 years. Drive North up Collier Boulevard (951), and West on Tamiami Trail (41) towards Naples, and you will see that there are developments going up everywhere. Fiddlers Creek, Lely, Treviso Bay, and Verona Walk are all breaking sales records. Naples Reserve, Sabal Bay and Artesia are all new and upcoming developments on the East Trail. The Collier family is beginning a major PUD (planned unit development) just east of Rattlesnake Hammock, with projections of another 20,000 people in the next 10 years. Why is this happening? One of the major reasons is what some experts call, the “GREAT BOOMER TAX MIGRATION”. Florida is projected to be its largest benefactor. States like Florida, that have no state income taxes, no local city income taxes, no inheritance taxes, lower property taxes, and lower sales taxes, are benefitting tremendously from this mass migration. These states are seeing the invasion of millions of Boomers, voting with their feet, against higher taxes and regulations, and moving to tax payer friendly, Southern and Western states.
These Boomers are propelling the greatest migration in American history. This is a major exodus, according to the experts. They say it will continue to rise with a vengeance, especially as we see the Echo Boomers (Generation X) come into the picture. The present and future migrations of these two groups will create a stampede into the lower tax states. Travis Brown verifies this in his book “How Money Walks” when he stated that over $2 Trillion Dollars shifted from higher tax states to the lower tax states between 1995 and 2010. Florida was the biggest benefactor with a gigantic $86.4 Billion over this period. Florida is the fourth largest state in population and growing rapidly. An all time record was broken in 2012 with approximately 90 million visitors to Florida. The influx of these groups is significant and it will continue to increase as these Boomers vote with their feet. The writing is on the wall: Goodbye Detroit, so long Long Island & New Jersey, Chicago is history, and adios Ohio. These 2 groups of Boomers are studying and analyzing everything. Florida’s tax structure is extremely attractive and our cost of living is incredibly low. Florida real estate is roaring back because of it’s a bargain buys, our unemployment is under 7.5%, we are a great place to live, retire, make money, work remotely, invest wisely, live healthier longer lives, raise families safely, and not be restricted by our environment. The real bottom line is, that these groups are going to go WHERE THEIR MONEY IS TREATED BEST!
The foreign national Boomers from Canada, Germany, United Kingdom & South America are major contributors to our exploding real estate markets. The Canadians represent 36% of all Florida foreign buyers. While Miami is reporting brisk sales from the Brazilians. Our visitors from across our borders are always in awe of our beautiful island. Many holiday here from May through October and have kept real estate percolating all summer.
We are on the threshold of greatness! It is truly paradise here in the "Hawaii of the East". We are a "One of a Kind" island and your safe haven for your hard earned dollars. Wise investors are diversifying their portfolios and entering Blue Chip real estate markets like Marco Island. We will very soon be saying goodbye to the good buys in our area. We are rapidly approaching build-out and there will never be another island developed like Marco Island. Why? Because our government and all the environmental laws prohibit dredging canals and building on mangrove islands. Our perfectly pre-planned community of Marco Island is a very limited commodity, never to be reproduced anywhere in the country. Limited commodities naturally increase in price. We are a preferred investment opportunity. The demand for our zip code continues.
By committing to the Marco area, you can secure a lifestyle that most people only dream of. You will achieve a peace of mind knowing that you own a piece of paradise. I am very thankful for having the privilege and opportunity of living and working here for the past 3 decades. It's great to be alive and on Marco Island! I recently re-read "The Last Paradise, the building of modern Marco" by Douglas Waitley, a magnificent book that is highly recommended. It can be purchased at either Sunshine Booksellers stores, The Marco Island Eagle Newspaper, or my main office. This book is a mandatory read for all of my sales agents and a must read if you are purchasing a property here.
There is something for everybody in all price ranges and categories. We are specialists in Marco Island Real Estate and surrounding communities. Feel free to call me direct on my cell phone (239) 592-3000. Or stop by our main office located at 207 North Collier Boulevard, just one block North of Residents’ Beach and San Marco Road. We are on the corner of Saturn Court and North Collier Boulevard. Ask for Joe Charde, the “Guru” of Marco Island. I will help you make the wisest decision based on facts, so you can capitalize on these present and future values. The best is yet to come!
•Tony Macaluso Seminars Palm Beach Gardens, Florida 2013
• Boomers on the move article - Newsmax June 2013 Daniel Ruddy & David Patten