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
| Jun 5, 2012
Cannon Design joins forces with Peter Ellis New Cities
Peter Ellis will now lead Cannon Design's urban planning and city design practice in collaboration with the firm's executive leadership.
| Jun 5, 2012
Walker Parking opens office in Abu Dhabi
Walker has been in Abu Dhabi since May 2011 but in a temporary office suite.
| Jun 5, 2012
Glumac hires Drit Shoemaker as new director of business development
Shoemaker will research, connect, and forge new client relationships with architects, developers, owners and brokers while strengthening relationships with current clients.
| Jun 5, 2012
Hoffman Architects Arbuckle elected president of New York/Tri-State DOCOMOMO
As chapter president, Arbuckle will guide and oversee the organization's efforts on behalf of Modern buildings and sites, and he will act as the main spokesperson for the organization.
| Jun 4, 2012
Brownfield goes green
Chicago Center for Green Technology uses high-speed, energy-efficient hand dryers to share its green message and earn LEED credits.
| Jun 4, 2012
KBE Building and CTA Construction awarded Project of the Year from CMAA
Award given for work done on the renovation of Beverly High School in Beverly, Mass.
| Jun 4, 2012
Pressley promoted to Senior VP and CIO at Hill International
Pressley will be responsible for managing all of Hill's information technology systems and software worldwide.
| Jun 4, 2012
Stalco Construction promotes Scott Pavick to chief estimator
Pavick manages the estimating department and is responsible for developing cost estimates and budgets, value engineering, and subcontractor bid evaluation and negotiations.
| Jun 4, 2012
HBD Construction to build new training campus in St. Louis
Larger campus facility will expand training opportunities for plumbers and pipefitters.
| Jun 1, 2012
New BD+C University Course on Insulated Metal Panels available
By completing this course, you earn 1.0 HSW/SD AIA Learning Units.