October 9, 1998

A look at why we move

By TOM KELLY
The Real Estate Advisor

The new capital gains legislation, coupled with the lowest home-loan rates in three decades, has many folks selling their primary residence and purchasing another home sooner than planned.

Some of these houses are retirement homes, a buy-down move that nets a new, smaller residence and puts tax-free cash into wallets once reserved only for persons age 55 and older.

But where are these people moving? Are they following the century-old patter of following a family member, typically a grown child?

A recent relocation survey has raised a few eyebrows not only for its findings but for the supposedly "narrow" segment of the population polled. According to Clyde and Shari Steiner, authors of "Steiners' Complete How to Move Handbook," (http://www.movedoc.com/) the resentment of annoying friends and family leads to the third most important reason for moving.

Annabel Cook, an expert in rural sociology at Washington State University, said the survey was counter to traditional research.

"There is a 100-year migration stream that shows family members typically relocate to where family members live," Cook said. "The model used in this particular model is a bit narrow, especially when you consider that 63 percent of the participants had no children. That's unusual."

Bellevue's Lee Fisher, former head of economic development for Rainier Bank and now a nationally recognized consultant on retirement, said a problem with a family member could surface but generally only in an isolated circumstance.

"You may have the child, or grandchild, who has cared for an aging parent for a long period of time," Fisher said. "Finally, this person is relieved of that responsibility and moves away from dear, old grandma for a breath of fresh air. However, I have not heard that there is enough of this type of occurrence to say this is a pattern."

Other reasons to move mentioned in the Steiner survey were too small a home at (46 percent said too small), dangerous neighborhoods or noise (29 percent) and a long commute to work (29 percent). The biggest advantage was lifestyle change (79 percent).

"There is no doubt that there is a changing demographic in many neighborhoods," Fisher said. "Personal habits of neighbors can push other neighbors to relocate.

"For example, if younger people who enjoy loud music move in to a traditionally older neighborhood and their friends follow, those who have been living there often seek an alternative."

Analysts who study retirement and family relocation say that as seniors became more dependent, they moved closer to a relative. Now, with home health care gearing up to help people age in place, they are staying in the home longer.

Several studies by the American Association of Retired Persons found that people age 55 and older want to stay in their current homes for as long as possible. The ones who do move typically are the healthiest, wealthiest and the most educated of that group.

Fisher said many retirees move to be closer to adult children while others want to leave the crime and congestion of expensive cities.

"People often tend to move back to the environment of their childhood," Fisher said. "If they had pleasant memories of a small town, they look for a place that has some of the amenities of home. If they have lived and worked in the big city for most of their professional life, they often seek a more rural place."

My dad was from Fort Dodge, Iowa. He moved to the big city at a young age and watched it get bigger. Maybe his memories of that small town weren't all that pleasant, because he lived in the big city in the same big house for 46 years until his death earlier this year.

My folks raised seven children in that home, and the back yard was quite the gathering spot for barbecues and half-court hoops. Even though we encouraged them several times over those years, nothing could entice them to leave their friends and extended family.

If they were terribly annoyed, it was never enough for them to move.

Previous columns:

• Thinking again about refinancing?, 10-02-1998
• Rates are low: It's time to act, 09-18-1998
• How to get help from the 'Big Agent in the Sky', 09-11-1998
• 125% loans getting people in trouble, 08-28-1998
• Renting your home out for 14 days can be lucrative, 08-06-1998
• Real estate bargains in Canada not so easy to realize, 07-31-1998
• 'Cozy' or cramped: Who's to blame when real estate ads fib?, 07-24-1998
• Homeadvisor: tool for agents or new market for Microsoft to dominate?, 07-10-1998