When it comes to buying homes, baby boomers are just as likely to take out mortgages as their younger counterparts – and far more so than their parents and grandparents when they moved into and beyond middle-age.

"Boomers aren't debt averse," researcher Margaret Wylde said at a seniors housing symposium in Chantilly, Va., last month. "Even seniors in the 75 and over range are taking on mortgages. That was unheard of just a few years ago."

Boomers, all 77 million of them born between 1946 and 1964, are "re-writing the rules of consumer behavior everyday," agreed Jack Haynes, executive vice president of Countywide Home Loans' National Builder Division.

They're not cashing out the considerable equity they've built in their first or even second homes. Instead, they are buying third and fourth homes, often bigger, more expensive homes and apartments, according to these and other specialists who spoke at the "Building for Boomers & Beyond" conference sponsored by the National Association of Home Builders.

And more often than not, boomers are financing their new homes rather than paying cash.

"They've never been denied anything," said Haynes. "They've always been highly leveraged. So they're not looking to pay cash for their final house."

Haynes said today's group of 41 to 59-year-olds are "more sophisticated" than those who went before them. "They understand leverage, and they're not as intimidated with financing as their parents." One out of four boomers are paying more for their golden year castles than they paid for previous homes, according to a joint NAHB-Countrywide survey.

They are "incredible carriers of wealth, and they are now converting that wealth into their lifestyles," said Chuck Covell, president of Bozzuto Homes, a Washington area home building firm based in Greenbelt, Md.

"They are much more interested in deeper, broader lifestyles, and they are much more focused on luxury that any other [age cohort]," he said.

When the house hunt turns to financing, moreover, boomers are being "just as exotic" as they are when picking the features of their new homes, according to Haynes

"We talk everyday with seniors who are seeking ways to maximize their purchasing power," he reported.

Though he could offer no statistics, the Countrywide executive said flexible payment options are particularly popular among boomers. So are interest-only loans that require no principal payments for up to five years but still permit borrowers to pay down as much as their loan balance as they desire.

In another trend, Covell said older seniors are attracted to age-restricted communities but not younger ones. At the same time, though, seniors of all ages prefer first-floor living space that includes the master suite he also said. And they "always want more."

Today's seniors are "unbelievable carriers of wealth," the Washington area builder said. "And they are now converting it into their lifestyles. They are not buying solely on price or location."

Covell also noted that most boomers see themselves working well past their traditional retirement agent. Many plan to continue working, if not full, then part-time.

Published: June 1, 2005

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