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 | Mar 11, 2016
German artist recreates Brutalist buildings with LEGO blocks
Arndt Schlaudraff brings the beauty out of the rugged, linear style of buildings most popular a half century ago.
Architects | Mar 11, 2016
Architecture for Humanity rebrands itself as Open Architecture Collaborative
With a new name, logo, and mission, the Open Architecture Collaborative is seeking a fresh start.
Architects | Mar 11, 2016
AIA survey finds many women and minority architects still feeling underrepresented and unfulfilled
Dissatisfaction with “work-life balance” and compensation are cited as reasons why companies’ diversity strategies may be faltering.
University Buildings | Mar 11, 2016
How architects can help community colleges promote community on campus
Even in the face of funding challenges and historic precedent, there are emerging examples of how partnership between two-year academic institutions and designers can further elevate community on campus. CannonDesign's Carisima Koenig has a few key examples.
Architects | Mar 10, 2016
Value engineering: How to manage the process and limit the risk of VE
AEC consultant Steve Whitehorn shares several ways in which architects can be more effective managers of value-engineered change.
Architects | Mar 9, 2016
Two Houston firms merge to form Method Architecture
In mid-2016, Architects-Plus and Three Square Design Group will join to make a studio that will design industrial centers, corporate interiors, breweries, and more.
Hotel Facilities | Mar 7, 2016
Exclusive villas and spa in China will be built at the center of a lake
The only connection between the complex and the mainland will be a narrow pedestrian bridge.
Office Buildings | Mar 2, 2016
HDR redesigns Twin Cities' studio to have coffee shop vibe
With open spaces, huddle rooms, and a design lab, the firm's new digs are drastically different than the old studio, which felt like working in a law office. Design Principal Mike Rodriguez highlights HDR's renovation plan.
Architects | Feb 25, 2016
12 architects selected for 2016 AIA Young Architects Award
Winners include Amy Kalar and Karen Lu, both with HGA, BNIM's Carey Nagle, and MSR Design's Bob Ganser.
Architects | Feb 24, 2016
Is the booming freelance economy a threat to AEC firms?
By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.
