Identifying homeowner types is the first step to strategic planning and business growth
When it comes to retired homeowners there are movers and then there are remainers to borrow a BREXIT term. What are the impacts of older homeowners’ home buying and relocation habits in qualifying for a reverse mortgage? That’s a question addressed in a recent study by the Center for Retirement Research. “The question is why homeowners – who need the money, have the equity and want to stay put – avoid borrowing against their home”.
With reverse mortgages currently only being adopted by less than 2% of age-eligible homeowners, it’s a question that warrants discussion. The study divides movers into four distinct demographic groups. First are those who stay in the same home they lived in during their 50’s.
The second group is those who purchase a new home around the time of retirement and remain there through old age. Those who are never movers and stable movers tend to have more housing wealth and financial assets.
Next are the frequent movers. While this group tends to be better educated few are two-income households, they have more children, experience more interruptions in employment, and consequently have less wealth.
The last group is the late movers. The study found this group typically has more housing and financial wealth, but they are vulnerable to health issues that force them to relocate in their 80’s.