Retirees set the tone for housing market

The oldest Americans aren’t always considered trendsetters, but in 2023 they’ll be on the forefront of home buying and selling.

Each year, TKI releases its nSKOPE Predictive Analytics Report. This report predicts the number of homes that will be on the market in the next year, where those homes will be located and what the demographics of homebuyers may be. 

In 2023, Baby Boomers and retirees will be setting the curve in the housing market

According to the report, “Empty nesters, homeowners between 45-64 with no children at home, are expected to make up 10.2% of all listings.” The report goes on to note that, “Retirees — those 65 and older — are expected to be 7.5% of the selling community.”

Older Americans continue to flock to warm-weather destinations

These older Americans are flocking to the standard locations that have attracted retirees for years: Arizona, Florida, Myrtle Beach and Santa Rosa. 

However, in 2022 the city that’s market activity was the most accurately predicted by TKI was Decatur, Illinois. 

Despite not being a retiree destination, Decatur, Illinois was predicted to list 2,024 homes in the past year. In reality, they listed 22.9% of those properties. Other cities that were accurately predicted included Kalamazoo, Michigan, Jacksonville, North Carolina and Colorado Springs, Colorado. 

To make these predictions, TKI analyzes thousands of zip codes and their housing market activity. 

Demographics most likely to move

They also predict the movements of specific age demographics, including families with school-aged children, single buyers, couples and older families. The 2023 predictions for these groups were as follows:  

  • Families with school-aged children make up 23.5% of homebuyers
  • Young families make up 6.4% of homebuyers
  • Older families make up 15.8% of homebuyers
  • Empty nesters make up 10.2% of homebuyers
  • Retirees make up 7.5% of homebuyers
  • Single people make up 8.7% of homebuyers
  • Couples without children make up 5.4% of homebuyers

Moving into 2023, TKI predicts the zip codes with the most activity per population — regardless of the age demographics they attract — will be:

  • Washington-Arlington – Alexandria, DC-VA-MD-WV (243,285 homes to be listed), 
  • Austin, Texas (103,247 homes to be listed), 
  • Salt Lake City, Utah (43,686 homes to be listed), 
  • Colorado Springs, Colorado (36,317 homes to be listed), 
  • Provo, Utah (26,669 homes to be listed), 
  • Greeley, Colorado (25,249 homes to be listed) and 
  • Jacksonville, North Carolina (9,188 homes to be listed)
  • Casper, Wyoming (3,023 homes to be listed). 

Using the data from the TKI report may help agents to focus their attention on the groups most likely to buy or sell in 2023 and the areas most likely to see an active market. Keep these nation-wide trends in mind when marketing to your local audience.