The U.S. population of 77 million baby boomers—those born between 1946 and 1964—are a growing market force in the housing industry, according to speakers at the National Association of Home Builders’ (NAHB) recent Building for Boomers and Beyond Seniors Housing Symposium in Chantilly, Va.
Experts at the symposium reported that the 50+ population is looking for new housing, but not within the context of retirement traditionally associated with this age group. And although it is difficult to make generalizations about this independent-minded generation, they said, by and large aging boomers do not see themselves trading down but instead expect to be moving up to the best housing they have ever had, even if it means taking out a hefty mortgage to finance their lofty housing aspirations.
The home buying preferences of this segment of boomers is consistent with what NAHB is finding in overall home buying trends in which given the choice of more space or higher quality features, new home buyers are overwhelmingly opting for the latter. When asked to choose between a bigger house with fewer amenities or a smaller house with high-quality products and amenities, 63 percent of the homeowners surveyed (representing a variety of age demographics) by NAHB favored downsizing to the home with the bells and whistles.
A study conducted by Countrywide in conjunction with NAHB two years ago found that one-fourth of home buyers aged 50 and older were paying more for the home of their golden years than for their previous home, and their new homes were likely to feature next-generation amenities like structured wiring and exterior maintenance services.
Retirement Only a Distant Thought
Information from a three-year focus-group study of baby boomers ages 47-58 who are looking to move within the next three years indicated than an active-adult community has little appeal for this oversized (about 30 million Americans) and affluent demographic group. Symposium panelists reported that these boomers on the leading edge aren’t ready to make a move yet and are not thinking in terms of retirement, but approach real estate as an investment or out of a need to move to a new home.
And, according to the AARP, even if they wanted to retire, only 20 percent of boomers are in the financial position to be able to do so. And many are unwilling to move into a community where they will have to adhere to rules and regulations.
Rules aside, these boomers are torn between the desire for a single family home and the conveniences of a community that offers time-saving amenities such as dry cleaning, house keeping and concierge service. And, these features may end up persuading more aging boomers to make the transition into an adult community.
Other new home characteristics such as more open space, larger kitchens and fewer walls are leading the trend for these buyers, along with flexible space that allows for individualization and customization. One consistent requisite, however, is putting the primary living spaces all on one floor.
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