Once the retirement of baby-boom generation get started, it is predicted to be difficult to liquidate their asset due to its concentration in real estate and also difficult to secure life funds including housing expenses because selling pressure of th...
Once the retirement of baby-boom generation get started, it is predicted to be difficult to liquidate their asset due to its concentration in real estate and also difficult to secure life funds including housing expenses because selling pressure of their real estate which they possess for their children's generation is expected to rise - for burden of debt redemption is increased due to income decreasing after retirement and they think they have to support education and wedding expenses of their children.
Especially, as baby boomers retire from their job, a phenomenon which baby boomers sell, lease and downsize their house for securing their old age fund is appeared. Accordingly, it leads to a perspective that this phenomenon accelerates possible house price deceasing and long term recession.
Likewise, the retirement of baby-boom generation has became the most prominent issue in real estate market. Furthermore, tailored resident policies for constant resident stabilization based on their life cycle are required because resident policy for aged generation from 55 years old to 65 years old the age they usually retire from their job is inadequate.
This paper is aimed at analyzing what kind of counter strategy is required in the point of residential policy view that to stabilize their dwelling and minimize defects toward real estate market after providing their favorite house moderately where it is needed the most, subsequently comprehending baby boomers behavior to choose their residence after their retirement.
Futhermore, purpose of this paper is to suggest an alternative policy to stabilize baby-boom generation's residential condition according to an analysis which specifically establishes house choosing preferences after their retirement and comparatively analyses their demographic character, economic character, character of degree of retirement preparation and house choosing preference based on a study that categorizing selecting factor about their residence house after their retirement.
Based on actual proof analysis of residence selection factor of baby boomers after their retirement, it needs to appreciate a statistic that baby boomers commonly have an intention to move their residence, especially in social factor preference group 92.3% of them have the intention.
Besides, among the reasons that they want to move their residence, 'longing of pastoral life' take the highest rate and 'securing old age fund due to downsizing their residence' in social factor preference group, 'downsizing their residence due to their children's wedding' in economic factor preference group follow another reason.
Regarding retirement time, it is measured that economic factor preference type has a house moving plan from 1 year to 3 year after their retirement and it is earlier then the other group.
Referring to area where they want to dwell, there is definite difference between each group, locationalㆍphysical factor preference group favors agricultural and fishing village(including their hometown), social factor preference group favors metropolitan area. Pattern of purchasing their residence, they generally favor owning their houses locational and physical factor preference group favors small dimensions, social factor preference group and economic factor preference group relatively favor medium or large dimensions. These researches should be applied in establishment of residential moving plan of government because it is speculated that baby boomers' house ownership rate stays at high level during their old age.
On the basis of all researches, this paper suggests following political solutions based on characteristic analysis about residence choosing factor and moving plan prior to their retirement and subsequent to their retirement.
First, social factor preference group, economic factor preference group favor pastoral residences and locationalㆍphysical factor preference group favors detached house. Consequently, seeking means of expanding pastoral and detached house supply are needed because it is anticipated that long term resident policy responding those demand must be established.
Second, LH public corporation currently supplies lease houses through multiple house purchase business which corporation is proceeding. An institutional system which allocates some portion to the baby boomers who are future old age generation is required during business process.
Third, an active vitalization of co-housing system is required. co-housing means type of residence that is equipped with additional sharing facility such as multiple individual house, commonhouse, open space. Moreover, it combines voluntary autonomous right and benefit from community life.
As previously stated, it is considered to be the time that Korea should attempt to stabilize real estate market through securing residential space and moving their house in order to preparing for retirement of baby-boom generation and requiring implementation of tailored residential needs policy which baby boomers prefer.