by Mike Colpitts 
Baby boomers top real estate owners in the US, with a huge concentration of ownership in Florida.- Boomers own $20-Trillion worth of real estate, double of their nearest generational peers.
- Vacation homes, condos and other residential rental properties make up the majority of their investments.
Baby boomers own more real estate in the U.S. than any other sector making them the largest holders of single family homes, condos and investment properties, according to an analysis of Federal Reserve data.
Boomers, born between 1946 and 1964, own 41% of all real estate holdings in the nation, representing $20-trillion of real estate assets. The figure is nearly double the second largest generation of real estate holders, Generation X, which owns or has mortgages on 29.4% of the nation’s real estate.
Real estate represents 22.7% of Boomers net worth, compared to 40.8% for millennials, who rely more heavily on property as a share of their financial assets. Millennials, who saw their parents under-go the real estate crash in 2008 account for just 10% of U.S. real estate wealth.
However, the imbalance reflects decades of home price appreciation, investment gains and limited supply that have made entry into real estate ownership more difficult for younger buyers. The downturn in home values the past few years in many local markets has lowered home prices.
In Florida, known for its sunshine and warmer weather, baby boomers top real estate owners, with more property than any other generational sector in the nation.
The National Association of Realtors (NAR), says baby boomers own even more property, 50% of the real estate in the U.S. “Florida is a prime destination for retirees, with over 4 million people age 60 and older living in the state,” said Florida Realtors Chief Economist, Brad O’Connor. “Many baby boomers buy property for both personal use and investment purposes.”
The state’s aging population contributes to the dominance of boomers in the Florida housing market. As boomers approach retirement age, many choose to relocate to Florida, purchasing second homes, vacation properties and rental investments. No state income tax and a warm climate makes Florida attractive.
U.S. Census Bureau data shows that over 30% of Florida homeowners are 55 or older, with the highest concentrations found in Miami, Fort Lauderdale, and the broader Southeast region. However, Southwest Florida, including Naples and Fort Myers, is particularly popular among boomers.
Southwest Florida is a hotbed for investment properties, largely driven by baby boomers seeking vacation rentals, short-term investments and retirement homes. An estimated 55-60% of property owners in Southwest Florida are 55 or older, and a large portion hold properties as investments.
Prices of condos and many other rental properties have declined an average of 30 to 40 percent in the past three years in Southwest Florida, making it a strong buyers’ market and a great time to find deep discounts on properties with an experienced real estate agent.
Nearly 45% of residential properties in the region are owned by individuals who either rent them or use their properties as seasonal homes. This includes homes, condos, and multi-family units in Naples, where short-term vacation rentals have boomed. The growth of platforms like Airbnb and VRBO have fueled the trend, allowing boomers to earn rental income through short-term leasing.
In Naples, which has a high concentration of retirees, the rental market has seen significant growth. The trend is similar in Fort Myers, where boomers frequently purchase second homes for rentals or to resell as investments to make a profit.