Harvard Trained Economist, Harry Dent, says that real estate will never be the same following The Great Boomer Migration.
This short blog will provide an explanation of the simple reason why baby boomers will change the economy of the country.
The real estate model for the U.S. shows that net home demand peaked in late 2005. This trend is expected to continue to fall until approximately 2039 when the last baby boomers die. Dent says the worst period will come between 2029 – 2039 when the retirement population peaks in size.
The net demand will immediately go negative for a decade, as opposed to a steady decline. He says this is why residential assisted living homes are a more viable investment opportunity, instead of fix-and-flips and rentals.
Based on Zillow, by 2037, a massive 37 percent of baby boomers in 20 major cities will experience homes sold.
Do you realize that the death of the baby boomers will alter the entire landscape of the American economy?
Examples Why Dying Baby Boomers Will Redefine The Economy
The retirement rates of Tampa, Florida at 33.2 percent, Tucson at 32.6 percent, Miami, Florida, and Orlando tied at 33.2 percent. Phoenix region ranks at 28.2 percent for retirees – these are the top 5 retirement areas.
Now, consider Sun City, Arizona. That was the first official community built solely for aging baby boomers and retirees. Who will buy these retirement homes located far away from working areas when these baby boomers die in the next two decades?
Harry Dent says he agrees with Gene Guarino’s idea to turn these homes into larger residential assisted living homes. Guarino teaches this concept at the Residential Assisted Living Academy.
Afterward, within the same community, perhaps add a nursing home within the core of the neighborhood. Other retirement communities like this are in the Rust Belt areas of the Midwest and southwest. These are areas suffering from manufacturing job losses where younger people are rapidly relocating out.
As an example, consider cities like Dayton, Cleveland, Pittsburgh, Milwaukee, St. Louis, Buffalo, Greenville, and Birmingham. After the Great Boomer Migration, these communities will never be the same.
A new economic plan will be needed – real estate will never be the same. This is because much smaller generations follow the baby boomers. This is the first time in modern history that the subsequent generation will shrink in size.
Unfortunately, cities within the Rust Belt and retirement communities in the Sun Belt will feel it the worst.
What Should Sun Belt And Rust Belt Real Estate Investors Do?
According to Harry Dent and Gene Guarino, the absolute best real estate strategy for investors is to purchase mini-mansions in these areas. The housing market falls, these huge homes will be affected the most during the crash.
Convert these mini-mansions into residential assisted living houses that will generate much higher cash flow than traditional rental properties.
Who is going to benefit from the paradigm shift in real estate investing?
Individuals who prepare themselves now will be poised to take advantage of this investment opportunity.
Gene Guarino’s RAL Academy Will Teach You Everything You Need to Know
Gene Guarino is an American businessman and author of his newest book titled, Blueprint, How To Start a Residential Assisted Living Business. He operates through a number of companies that he leads, including Family Legacy Homes, Residential Assisted Living National Association (RALNA), Pitch Masters, and Residential Assisted Living Academy (RALA).
RALA is an assisted living education company that teaches everything from A-Z about meeting the rising demand for senior housing. Guarino’s 3-day accelerated RAL course empowers students to achieve true financial independence. During the course, instructors use an interactive live training approach with physical RAL home tours to teach students how to gain the most success.