Baby Boomers boasting new influence over realestate.

Some of the most important trends in real estate today, are the population and demographic makeup of the United States. Knowing who they are will assist you in marketing to them. Here is a guide to help you understand who is buying, renting, selling and why.

Baby boomer is a term describing

The Baby Boomers are now in their 50's and 60's. The next few years will be their most productive earning and saving years. They currently account for 50% of all retail spending. They are predominantly large homeowners who are leaving suburbia for the easier lifestyles of inner cities. Their preferences are for luxury. They also account for 80% of residential ownership. Approximately 78 million people are in this powerful group.

The baby boomers are beginning to make plans for retirement. Most do not want to move into senior assisted living quarters, a trend picked up from their Depression- era parents.

These parents, who are now making their way into nursing homes, are gifting their homes and estates to their children, the baby boomers.

This will represent a transfer of over $10 trillion of inherited wealth, increasing boomer's hold on real estate and furthering their spending power. This group of the population will spur the market for real estate through second homes, resort time-shares, and the safety of real estate for investment purposes. Those who do not have the risk tolerance to go it alone will most assuredly pump their money into Reits as a defensive play.

The Baby Boomers, will also add to the growth of suburban development by renovating their current homes.

Flexible work schedules and telecommuting will add to the invigoration of the suburbs.

Quality of living, coupled with their desire to have a shortened work commute, have sparked an increased demand for nearby services. Retailers and businesses are moving closer to this consumer.

Baby boomer empty nesters will drive an expansion for premiere locations and amenities.

This segment of the population tends to buy or rent luxury apartments, driving up demand for upscale living. Research shows that office and commercial development will follow the residential demands of this powerful group as well, energizing cities and bedroom communities..

The next big bulge on the demographic radar screen would be the children of the baby boomers, known as "Echo Boomers." They are called Echo Boomers because they are the genetic offspring and demographic echo of their parents. Echo Boomers generally refers to those born between 1982 and 1995. Their numbers total over 80 million strong and account for over 27% of the US population. Based on their size alone, Echo Boomers' sheer spending power will be unrivaled in American History.

Research shows this group to be more ethnically diverse.

One in three is not Caucasian. One in four lives with a single parent and three in four have working mothers.

This group is poised to be radically different from their parents and will represent a major economic influence. They prefer action and hip, cutting-edge designs.

These first time renters will prefer city-living while they are making their way up the corporate ladder. Echo boomers want to be where the action is.

Those just graduating college prefer smaller units with amenities and will not commit to buying until they have accumulated enough wealth and achieved success in their career.

This will put pressure on the currently low supply level of rental apartments in big cities forcing rents to rise. Approximately, 70% of new household formations will result from this group alone making it the fastest growing "renter" group.

Unlike their Boomer parents, they will not always wait until they are married to buy a home. In 2005, 40% of homeowners were first time buyers and 50% of them were between the ages of 25 and 34.

Echo Boomers grew up during the period where they internet already existed. Most of them were computer literate from an early age. They rely on the interenet for their entertainment, as well as research.

It is no surprise then, that 70% of all homebuyers today start their search for real estate on their computers.

While Echo boomers already spend over $170 billion per year. This currently accounts for slightly less than 10% of the country's spending power, however, it will be just a matter of time before their parent's and grandparent's wealth is transferred to them. Echo Boomers also heavily influence their parents' purchasing decisions, especially when it comes to technology and entertainment.

Echo boomers are known for their voracious shopping appetite.

Their buying preferences are driving retailers to be in close proximity to this customer's living and working quarters. Shopping centers and urban retailers have a positive future with this group.

Many of our standard views of family structure, lifestyle, and household size will be challenged by these demographic trends.

In addition, longer life expectancies, and the solid influx of immigrants, will put pressure on the demand for housing. All of these factors and trends will generate huge apartment, retail and office demand.

What remains glaringly obvious is that there will be tremendous pressure in both the luxury high end apartments as well as affordable housing.

The prospects for residential development at both ends of the spectrum are very bright.

The United States is on the threshold of a housing boom unlike any we have ever seen.

BY ADELAIDE POLSINELLI, SENIOR EXECUTIVE BROKER, THE PLATINUM TEAM