The segment of the housing industry that caters to those home buyers and renters who are 55+ years old saw gradual but steady improvement in 2011. This trend is expected to continue throughout 2012 as more baby boomers turn 55 and seek new homes and communities that offer the lifestyle they desire. However, since the conditions of the current overall housing market are limiting their ability to sell their existing homes, this market is not recovering as quickly as might have been expected.
Like the overall single-family housing market, the 55+ housing segment is facing a slow but steady recovery. "NAHB is projecting that the number of housing starts in 55+ communities will increase 18 percent to 53,200 units in 2012, and another 25 percent, to 66,600 in 2013," said Paul Emrath, NAHB's vice president of survey and housing policy research.
Emrath said the multifamily segment of the 55+ housing market is doing particularly well, with an estimated 57% increase to 21,300 starts in 2011, and further increases in the forecast of 25,400 new apartments in 2012 and 29,100 in 2013.
According to NAHB, the 55+ housing market should continue to gradually improve over the next few years. "Nevertheless, this market remains fragile as many people in this sector who would like to purchase a new home are having difficulties selling their existing homes," noted Emrath. "The issues constraining their ability to sell are the same issues restraining the overall single-family housing market - low appraisals, a large supply of foreclosures and tighter mortgage lending criteria."
Knowing their customer base is important for builders' success in the current economic climate. "The 55+ builders who are doing well in these challenging times are innovative and creative and are in touch with their customer base," said W. Don Whyte, president of Kennecott Land in South Jordan, Utah, and incoming chairman of NAHB's 50+ Housing Council. "Successful builders also continually conduct market research on buyer's preferences and needs."
"Meeting the needs of buyers in the 55+ market involves having a more focused and targeted strategy on how to design, build and market new homes," said Whyte. "Successful builders and developers in the current market will encompass this approach." BD+C
Related Stories
Architects | Nov 29, 2021
LRK Names Tony Pellicciotti ‘Managing Principal’ of firm
Pellicciotti is one of LRK’s fourteen principals representing its markets in Memphis, Dallas, Philadelphia, Orlando/Celebration, New Orleans, Baton Rouge, Little Rock, and Princeton.
Architects | Nov 23, 2021
HMC names new Director of Design
James Krueger will oversee design and lead strategies to improve the impact of HMC’s work.
Giants 400 | Nov 20, 2021
2021 Parking Structure Giants: Top architecture, engineering, and construction firms in the U.S. parking structure sector
PGAL, PCL Construction, and Wiss, Janney, Elstner Associates top BD+C's rankings of the nation's largest parking structure sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 20, 2021
Top 100 Design-Build Construction Firms for 2021
Clayco, Hensel Phelps, ARCO Construction Companies, Swinerton, and Ryan Companies US top the rankings of the nation's largest design-build construction firms for buildings construction work, according to BD+C's 2021 Giants 400 Report.
Giants 400 | Nov 19, 2021
2021 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
Gensler, AECOM, Buro Happold, and Arup top BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 19, 2021
2021 Convention Center Sector Giants: Top architecture, engineering, and construction firms in the U.S. convention and conference facilities sector
Populous, KPFF, Lendlease, and Turner Construction top BD+C's rankings of the nation's largest convention and conference facilities architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 18, 2021
2021 Multifamily Sector Giants: Top architecture, engineering, and construction firms in the U.S. multifamily building sector
Clark Group, Humphreys and Partners, and Kimley-Horn head BD+C's rankings of the nation's largest multifamily building sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Laboratories | Nov 18, 2021
Tapping into the life sciences building boom
Paul Ferro of Form4 Architecture discusses how developers are pivoting to the life sciences sector, and what that means for construction and adaptive reuse.
2021 Building Team Awards | Nov 17, 2021
Caltech's new neuroscience building unites scientists, engineers to master the human brain
The Tianqiao and Chrissy Chen Institute for Neuroscience at the California Institute of Technology in Pasadena wins a Gold Award in BD+C's 2021 Building Team Awards.
K-12 Schools | Nov 10, 2021
K-12 school design innovation: 'Learning Everywhere' and the mobile classroom
Last September, AIA San Francisco awarded the Professional Category in its 2021 Future Classroom Competition to a five-person team from Culver City, Calif.-based Berliner Architects. The firm was selected for its “Learning Everywhere” idea that features a mobile strategy for education at school, home, on field trips, and in transit. BD+C's John Caulfield discuss that concept with Richard Berliner, AIA, Principal, Berliner Architects.
