The boomers are coming--and bringing their spending power.

The general consensus among financial advisors is that the economy is positioned for a positive turnaround. After several false starts, the economy seems well poised for a brighter future. The current stimulative policies are working their magic.

Consumer confidence is up, business inventories are low and corporations are geared to spend. Interest rates are at historic lows, tax cuts are everywhere, and we have built up a tolerance for "bad news." The major trend in the real estate industry is even better.

Investment dollars have been pouring into the real estate market which up until now, has been the only sector showing positive gains. Low interest rates and tax free exchange scenarios have enabled investors to capitalize on a marketplace that was ripe for the taking. Supply is low relative to demand. In addition, distressed debt is scarce. Real estate owners can easily sustain their mortgages.

Behind all of this good news is even better news: The Boomers are coming!

The Baby Boomer generation is now in their 40's and 50's. The next ten years will be their most productive earning and saving years. They currently account for 50% of all retail spending. They are predominantly homeowners accounting for 80% of residential ownership. Approximately 75 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 timeshares, and the safety of real estate for investment purposes. Those who do not have the risk tolerance to go at 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 tele-commuting 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 with high end 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 is the children of the Baby Boomers, also known as "Echo Boomers." Echo Boomers range in age six to 23 years old and their numbers total over 72 million strong. Based on their numbers alone, Echo Boomer's 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.

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.

Approximately, 70% of new household formations will result from this group alone making it the fastest growing "renter" group. While construction of residential units has been relatively mild, the demand is strongly increasing.

While Echo Boomers currently account for slightly less than 10% of the country's spending power, it will be just a matter of time before their parent's and grandparent's wealth is transferred to them.

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.