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
High-rise Construction | Jul 15, 2016
Zaha Hadid designs geometric flower-shaped tower for sustainable Qatar city
The 38-story building will have a mashrabiya latticed facade with hotel and residential space inside.
Building Team | Jul 11, 2016
Design-assist: The way to really fly [AIA course]
Experts explain the benefits of DA, a process where the subcontractors are retained to assist other Building Team members in the development of a design. Earn 1.0 AIA CES learning units by reading and taking the exam.
Building Team | Jul 11, 2016
Addressing client concerns about design-assist
Common concerns about DA include lack of familiarity, obtaining competitive pricing, and design liability.
Sponsored | Building Team | Jul 11, 2016
Construction Disruption at AECX: Technology, hackathons and the promise of change in LA
The lead up to AECX featured a discussion providing insight into the current state of the AEC technological revolution by exploring opportunities, challenges and choices AEC pros face.
Green | Jul 1, 2016
Perkins Eastman pledges to use EDGE green building system for five upcoming international projects
The firm will partner with the International Finance Corporation to promote sustainable building in emerging markets like India and China.
Healthcare Facilities | Jul 1, 2016
AIA releases summary of the 2016 Design and Health Research Consortium
Consortium members discussed how architects, designers, and health professionals can best apply design and health research in their communities.
Architects | Jun 30, 2016
The year's best small projects include a floating sauna, dental trailer, and smocked porch
AIA chose the 2016 recipients of the Small Project Awards. Every entry cost less than $1.5 million to build, with one as low as $900.
Architects | Jun 29, 2016
AIA: Healthy demand for all building types signaled in Architecture Billings Index
Recent client interest could signal resurgence for institutional market. May's ABI score was the highest mark in nearly a year.
Architects | Jun 28, 2016
5 easy ways architects can increase their profits
Whitehorn Financial Managing Principal Steve Whitehorn offers effective ways to recoup lost revenue, including a few strategies that capitalize on recent changes to the federal tax code.
AEC Tech | Jun 27, 2016
If ‘only the paranoid survive,’ what does it take to thrive?
“Sooner or later, something fundamental in your business world will change.” The late Andrew Grove (1936-2016), Co-founder of tech giant Intel Corp., lived by these words.