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
Smart Buildings | Oct 1, 2020
Smart buildings stand on good data
The coming disruption of owning and operating a building and how to stay ahead through BIM.
Architects | Oct 1, 2020
BIG imagines how we could live on the moon
The architecture firm has partnered with ICON on the project.
Architects | Sep 30, 2020
Sir David Adjaye OBE to receive 2021 Royal Gold Medal for Architecture
His practice, Adjaye Associates, was founded in 2000 and today has studios in Accra, London and New York, with projects across the world.
Coronavirus | Sep 28, 2020
Evaluating and investing resources to navigate past the COVID-19 pandemic
As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.
Coronavirus | Sep 24, 2020
The Weekly show: Building optimization tech, the future of smart cities, and storm shelter design
The September 24 episode of BD+C's "The Weekly" is available for viewing on demand.
Healthcare Facilities | Sep 10, 2020
Easing the oncology journey: The role of urgent care
Oncology patients are better served when they’re connected to the right staff.
Airports | Sep 10, 2020
The Weekly show: Curtis Fentress, FAIA, on airport design, and how P3s are keeping university projects alive
The September 10 episode of BD+C's "The Weekly" is available for viewing on demand.
Architects | Sep 8, 2020
The New City project by Eric Owen Moss Architects receives AIA’s Twenty-five Year Award
AIA’s Twenty-five Year Award is conferred on a building that has set a precedent for the last 25-35 years and continues to set standards of excellence for its architectural design and significance.
Architects | Sep 1, 2020
An evidenced-based approach to elevate the workplace experience
A new NBBJ report presents design concepts for providing people with opportunities to recharge and engage in the workplace.
K-12 Schools | Sep 1, 2020
The rise of inquiry-based learning in K-12 communities
Inquiry-based education offers a methodology that does not rely solely on the educator being the lead in all learning.
