As Gen X quietly emerges as the most active and influential buyer within the 55+ housing market, Zonda Economics sat down with Peter Dennehy, Zonda’s principal of advisory, to unpack how this generation is redefining downsizing, community, and aging in place.
Peter, you’ve spent more than 35 years in consulting and another five years in operational strategy and research for a land developer and home builder. How does that perspective shape the way you look at today’s 55+ buyer?
Experience matters because we’ve seen multiple cycles of what “active adult” is supposed to look like. The reality is that the 55+ market today includes both baby boomers and Gen X, and they are not the same buyer. Boomers are largely further along in their housing journey. Gen X, even though they’re a smaller generation, is the cohort making active moving decisions right now. They’re mostly still working but starting to plan for not working, are still active, and are very intentional about what their next move and home look like and how they function for their unique needs.
When you look specifically at Gen X, what types of buyers stand out?
There are really two Gen X buyers. First is the move-up or move-over buyer. These are Gen Xers still in family years, or perhaps with older children or parents. They want connected, walkable suburbs with restaurants, coffee shops, and a strong community. They don’t want to raise families in isolation. Many are working from home, they want space for kids or parents, and they still see themselves as ‘young.’ Wellness matters, but right now it’s more about amenities for their families than yoga studios.
The second, and larger opportunity, is the move-down buyer transitioning to a retirement home to age into. That’s where most of the momentum is.
Why is the move-down segment so important right now?
People in their late 50s and 60s are the most likely to make a housing move. Many Gen Xers are discretionary buyers and asset-rich; they own their homes, often outright, and have significant equity and household wealth. Gen X may be a smaller generation, numbers wise, than the boomers, but they’re active now. Many boomers are already settled. Gen X is coming up behind them, and they’re just entering peak downsizing timeframes, typically in their 60s.
How does Gen X approach downsizing differently than previous generations?
Gen X isn’t downsizing in the traditional sense. Many still want larger, multifunctional homes. Others are affordability-driven or single-person households looking to manage fun. They want space for family, hobbies, and work. Many care for aging parents or still support adult children, so multigenerational flexibility is high on their list.
They’re also very aware of aging in place. Many took care of their parents and learned what didn’t work. They want homes that are designed for longevity from the start: accessible bathrooms, smart kitchen layouts with pullouts, technology that reduces physical strain, and spaces that can adapt over time. Retrofitting older homes is expensive and often inefficient, which is why new homes are so appealing.
How much do lifestyle and community factor into their decision-making?
A great deal. Gen X is focused on health span, not just lifespan. They’re proactive agers. Physical health, mental health, and social connection all matter. They’re often coming from neighborhoods designed entirely around raising kids and are now looking for peers, community, and shared interests.
Avoiding loneliness is also important. These buyers want a healthy social network and places where friendships can form naturally. That’s why communities that blend dining, pools, social spaces, and fitness in a contemporary way resonate so strongly.
Are there examples of concepts that are working particularly well for this group?
Taylor Morrison’s Esplanade is a great example. It’s not age-restricted, but it delivers a lifestyle community in a fresher, more modern way. It’s less focused on child-rearing and more on a lifestyle-driven approach anchored in offering food and beverage, social, fitness, and wellness opportunities. These communities tend to be in established markets with good schools, shopping, and aging housing stock, which makes them very attractive to Gen X move-down buyers. While the concept originated in Florida, Taylor Morrison is exploring other markets to offer this concept, including locations in the Western U.S. and the Midwest.
Where do you see Gen X choosing to relocate?
The Sun Belt will always have appeal, but many Gen Xers are still working. They’re more likely to follow job magnets and where their children live: places like Raleigh, Nashville, and the Carolinas. Climate risk, insurance costs, and affordability are also top of mind.
Not everyone is heading to Florida, as we saw with baby boomers. Many people are perfectly happy downsizing within their own community or moving closer to their kids and, increasingly, their grandkids. Gen X is young enough to be very active grandparents, and they care deeply about being present.
Final question. What can builders do to better appeal to the 55+ buyer today?
Builders need to reinvent the old, tried-and-true 55+ model. Every market has a downsizing opportunity. The key is to offer a compelling product in places where people already want to be. What worked 20 or 30 years ago won’t work for the next 20 or 30. Builders who understand that will be the ones who capture this market for the long term.
