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
| Oct 16, 2013
5 secrets of successful entrepreneurs
If you’re on the outside looking in, successful entrepreneurship may seem mysterious. But it isn’t. Here are five patterns of behavior that are common to successful entrepreneurs.
| Oct 15, 2013
High-rise Art Deco courthouse gets a makeover in Amarillo, Texas
Recognized as one of the most significant Art Deco courthouses in Texas, the Potter County Courthouse is modernized and restored to its 1930s aesthetic.
| Oct 10, 2013
Behind the scenes at the U40 Summit: See the $5,000 U40 Vision competition in progress [slideshow]
Sixty-five up-and-coming AEC leaders are battling for $5,000 in prizes today at BD+C's Under 40 Leadership Summit in San Francisco.
| Oct 10, 2013
Arthur Gensler to architects: Don't give away your ideas
The founder of Gensler advises dozens of up-and-coming AEC professionals at BD+C's Under 40 Leadership Summit in San Francisco.
| Oct 9, 2013
From power plant to office: Ambler Boiler House conversion
The shell of a 19th-century industrial plant is converted into three levels of modern office space.
| Oct 7, 2013
10 award-winning metal building projects
The FDNY Fireboat Firehouse in New York and the Cirrus Logic Building in Austin, Texas, are among nine projects named winners of the 2013 Chairman’s Award by the Metal Construction Association for outstanding design and construction.
| Oct 7, 2013
Progressive steel joist and metal decking design [AIA course]
This three-part course takes a building owner’s perspective on the range of cost and performance improvements that are possible when using a more design-analytical and collaborative approach to steel joist and metal decking construction.
Sponsored | | Oct 7, 2013
Bridging the digital divide between the BIM haves and have nots
There's no doubt that BIM is the future of design. But for many firms, finding a bridge to access rich model data and share it with those typically left on the sidelines can be the difference between winning a bid or not.
| Oct 7, 2013
How to streamline your operations
The average U.S. office worker generates two pounds of paper each day, according to the EPA. Ninety percent of that trash is made up of printed materials: marketing reports, project drafts, copy machine mistakes, and unwanted mail. Here are a few ways AEC firms can streamline their management processes.
| Oct 7, 2013
Reimagining the metal shipping container
With origins tracing back to the mid-1950s, the modern metal shipping container continues to serve as a secure, practical vessel for transporting valuable materials. However, these reusable steel boxes have recently garnered considerable attention from architects and constructors as attractive building materials.