Winning Over Boomers: Strategies to Capture the Next Wave of Buyers

By Suzanne Dresser, National Partner Growth Director at Opendoor 

An Influx of Boomer Buyers Could Be on the Horizon – Turn Them Into Sales with These Tactics 

Mortgage rates are getting a bad rap for keeping buyers out of the market, but they aren’t always to blame. New Opendoor data reveals that while some buyer demographics are heavily impacted by elevated rates, others have varying priorities that will sway when they decide to move.  

In today’s dynamic market, builders need to be equipped to serve a variety of customers — especially if buyers flood the market at once. Here’s what Opendoor uncovered about Boomers’ vs. younger Americans’ moving plans, and how builders and sales associates can strategize to clinch sales.  

Rates aren’t stopping Baby Boomers 

58% of Boomers who are interested in moving within the next five years report that a lower mortgage rate of around 5% won’t alter their timeline. In fact, a whopping 85% plan to sell within the next three years, regardless of rate adjustments. 

So, what are they looking for? Boomers are prioritizing moving to regions with better weather conditions, or areas near water. 74% also plan to downsize their living space by 25%.  

Knowing that many Boomers plan to sell in just a few short years, builders should pump up marketing and advertising efforts geared toward that age group. For example, amplifying homes in 55+ age restricted communities – especially ones in warmer climates – and playing up the perks of these communities, such as nearby amenities and opportunities for social connections. When the time comes, sales associates can also focus on showing Boomer buyers smaller, one-story homes that align with their desire to downsize. Builders who are in tune with and adapt to these preferences will likely lock customers in at quicker speeds.  

Younger Americans are rate-motivated 

On the other hand, for adults 18 or older, mortgage rates and affordability are critical parts of their buying decisions. 50% of Americans say an interest rate of 6.5% or less would prompt them to look at buying a home. This is even clearer for younger buyers between ages 18-34, with 82% saying that rates would have an impact on their interest in buying a home. 

This means that when rates do finally ease up, we may see an influx of buyers entering the market. Many of these younger buyers could even be first-time buyers, so builders should focus on magnifying any financing programs that help ease first-time jitters.  

Younger consumers are also accustomed to digital experiences in nearly every facet of their lives. To meet customers where they are, builders should consider partnering with a digital real estate platform that makes buying a home seamless and efficient. Opendoor’s homebuilder program allows buyers to “trade-in” their existing home for a new build. Once they find their new home, their builder sales associate connects them to Opendoor, where they’ll get a direct offer on their existing home. This unlocks the equity needed to purchase the new home, and prevents any financing risks that would result in a sale fallthrough for the builder.  

Opendoor’s builder program operates in 50+ metro areas and works with 2,000+ sales offices. In 2023, the program unlocked billions in sales for its partners. Head to opendoor.com/partner/builder to learn more!