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As the economic status of
people rises, there is a perceptible change in their expenses.
This applies uniformly to all areas, including the purchase
of real
estate investment properties.
The life style and spending
patterns of affluent people foster the growth of business
in the utility sectors, as well as those providing recreational
amenities. The ambience of the area where they live undergoes
a change. Shopping arcades and malls, special cuisine restaurants,
bar and pubs, private and exclusive membership clubs, health
and fitness centers, beauty parlors, spas, swimming pools,
golf courses, parks and other luxurious facilities become
a part of the general surroundings.
This has a direct impact on
the real estate prices there. Florida is one such place that
has experienced a rise in prices of real estate due to the
ever-increasing presence of the baby boomers as residents.
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People who were
born between 1946 and 1964 are termed as Baby Boomers. These
were times of great economic prosperity. Following World War
II, there was a great need all over the world for restructuring
and reconstruction of the infrastructure of the nations. Cities
had been bombed and the economies were in shambles. There
was a great demand for all types of goods as well as services.
During this time the American
economy experienced unprecedented growth due to the increased
industrial production fuelled by the export demand. The veterans
who returned from the war were given low-rate loans by the
American government for starting businesses and buying homes.
They were also given unemployment compensation for a whole
year. If they wanted to pursue further education, the entire
cost was borne by the government. The result was that a majority
of the ex-servicemen went in for higher education and got
jobs or turned entrepreneurs. Consequently, their economic
status rose phenomenally. This also led to an increase in
birth rate, during this time of economic prosperity.
Other regions around the world
did not witness this ‘baby boom’. Therefore, the
term ‘baby boomers’ is applied to only that part
of the American population, which was born during this time.
The easy pay loans and the other support benefits given after
the war enabled many people to buy suburban homes, which were
earlier only within the affordability of wealthy people. There
was a change in life styles and the high-class suburbs that
developed later into satellite cities.
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In the United States, presently,
baby boomers make up the majority of the population at the
top echelons of culture, politics, industry and academics.
Two examples are Bill Clinton and George W. Bush. Both of
them were born in 1946. Baby boomers are people who belong
to the ‘very affluent’ class and their spending
patterns and lifestyles have added an escalating effect to
the existent price of real
estate in Florida.
Most places in Florida offer
amenities that cater to high standards of living, providing
comfort and luxuries of the best possible standards. There
are still avenues for investment in real estate in Florida
open. The options are luxurious and very appealing.
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