One of the topics garnering much discussion at the 2017 NAHB International Builders' Show happening this week in Orlando, Fla. is the outlook for 55+ housing market.
Will it stay hot or slow down?
At a press conference Tuesday, industry experts voiced optimism for the 55+ market and expect it to stay on its path of growth.
“We know, anecdotally, over the past few years that the 55+ housing market has been growing and is likely to continue to grow for the next decade, and now we have new numbers that back that up," said Paul Emrath, NAHB's vice president of survey and housing policy research, in a release. "The return of 55+ data – now included in the American Community Survey – will not only show us the size of the entire group of 55+ households, but also will give us information about individual markets, and how they are currently accommodating that growing segment."
There are roughly 77 million baby boomers in the U.S. and many will be looking for a new place to live in the coming years. As that boomer generation ages, many are looking to downsize to a home with a floor plan that makes single-level living possible, but with enough space for visiting family members and entertaining friends.
"Older home owners, in recent years, have been able to sell their large homes in the suburbs and buy an energy-efficient right-sized home, often in walkable communities with a wealth of opportunities for activities and social engagement," said Jim Chapman, chairman of NAHB's 55+ Housing Industry Council and president of Jim Chapman Communities in Atlanta, in a release. "Downsizing 55+ buyers do their research – they know what they want and don't want to settle for less."
Chapman recently teamed up with Oak Hall companies for the fourth time on an age-restricted community in the greater Atlanta area that will include a total of 739 homes, including 248 single-family detached homes, on 206 acres.
However, Chapman cautioned in a release, "Not every 55+ household is positioned to buy into such communities, so it's important that local jurisdictions plan to address the growing need for affordable rental housing for seniors as well."
On the positive side, Emrath noted that builder confidence has increased over the past several years. "NAHB's 55+ Single-Family Housing Market Index, which is based on a survey of members that measures builder and developer confidence for that market, regularly posted year-over-year gains from 2012 through 2015, and has remained in a very positive position through 2016, with third-quarter reports of sales and current traffic posting increases from the previous year," he said.
In Clermont, Fla., just a few miles outside Orlando, The BUILDER Taylor Morrison NEXTadventure Home has been officially unveiled. The 2,268 sq. ft. home was designed using exclusive new insight into what drives 55+ cohorts’ purchasing decisions.
To take a virtual tour of the NEXTadventure Home, click here.