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 18, 2016
A Frank Lloyd Wright building in Montana will soon be demolished, or will it?
The building is one of only three Frank Lloyd Wright-designed buildings in the state.
Architects | Nov 11, 2016
Six finalists selected for London’s Illuminated River competition
The competition is searching for the best design for lighting the bridges of central London.
Healthcare Facilities | Nov 10, 2016
Prescription for success: Managing technology in the design of healthcare facilities
While the benefits of intelligently deployed technology are abundantly clear to both designers and healthcare end-users, it’s no simple task to manage the integration of technology into a building program.
Industry Research | Nov 4, 2016
New survey exposes achievement gap between men and women designers
Female architects still feel disadvantaged when it comes to career advancement.
Architects | Nov 2, 2016
NCARB launches ARE 5.0
The newest version of the exam required for an architecture license, ARE 5.0, launched on Nov. 1.
Architects | Oct 24, 2016
Winners of the 2016 AAP American Architecture Prize announced
The AAP recognizes the most outstanding architecture worldwide across three disciplines: architecture, interior design, and landscape architecture.
Architects | Oct 21, 2016
A process of analysis and synthesis gives architects and designers the information they need to create
Sometimes people look only for the simple answer and don’t understand that there is a calculated process to get there, writes HDR’s Lynn Mignola.
Architects | Oct 21, 2016
The AIA Innovation Award Recipients have been selected
The program honors projects that highlight collaboration between design and construction teams to create better process efficiencies and overall costs savings.
Architects | Oct 21, 2016
NASA Orbit Pavilion to debut at The Huntington Library at the end of October
The pavilion uses sound to represent the movement of the International Space Station and 19 earth satellites.
Higher Education | Oct 20, 2016
Designing innovative campuses for tomorrow's students
Planning for places that foster effective innovation is still an emerging process, but the constant pressure on universities to do so continues from two of their key institutional constituencies—students and employers, writes Perkins+Will's Ken Higa and Josh Vel.