Earlier this week, I happened to catch a report on ABC News about the retiring Baby Boomer generation. I was already aware of the statistic that every day for the next fifteen years or so about 10,000 Americans will turn 65. These are the post-World War II babies who just refuse to age. Now that they're facing retirement, they're going to do it their way.

As the report went on, the statistics started getting pretty interesting, especially from the standpoint of real estate investing. About 42% of the Boomers say they plan to move when they retire, and of those, 49% say they're willing to go to another state. Then the cork popped out of the bottle. What's the number one Baby Boomer retirement destination?

Austin, Texas.

Yep, we have the fastest growing Boomer population in U.S.. They're drawn here by the low cost of living -- about 15% under the national average -- the fact that there's no state income tax in Texas -- and by the fact that Austin is fun. While it may surprise the youngsters, the live music scene is a huge draw for their grandparents who are also attracted by the proximity of the University of Texas. Four in 10 Boomers say they want a source of intellectual stimulation in retirement, something UT is answering with special, short-term classes catered to this interest group.

So, Austin hits the retirement trifecta for retirees: affordability, a chance to keep learning, and a fun, funky social scene with lots of live music.

Although this generation can likely afford to buy, most have divested themselves of the homes in which they raised their children and they want to feel unencumbered. Bingo. The perfect tenants. Used to taking care of a home. Responsible. Planning to stay in one place for several years. Financially stable.

We've been looking at a lot of good demographic information that supports the huge real estate investment potential in Austin, but personally, I think this is especially exciting news. We all want and need tenants, but more over, we want high-quality tenants, and they're on the way in droves!

If you'd like to see the original ABC News report, which was really well done, click here.

Posted by Monte Davis on
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