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
| Nov 29, 2011
First EPD awarded to exterior roof and wall products manufacturer
EPD is a standardized, internationally recognized tool for providing information on a product’s environmental impact.
| Nov 29, 2011
Suffolk Construction breaks ground on Boston residential tower
Millennium Place III is a $220 million, 256-unit development that will occupy a full city block in Boston’s Downtown Crossing.
| Nov 29, 2011
Report finds credit crunch accounts for 20% of nation’s stalled projects
Persistent financing crunch continues to plague design and construction sector.
| Nov 29, 2011
SB Architects completes Mission Hills Volcanic Mineral Springs and Spa in China
Mission Hills Volcanic Mineral Springs and Spa is home to the largest natural springs reserve in the region, and measures 950,000 sf.
| Nov 29, 2011
Turner Construction establishes partnership with Clark Builders
Partnership advances growth in the Canadian marketplace.
| Nov 29, 2011
AIA launches stalled projects database
To populate this database with both stalled projects and investors interested in financing them, the AIA in the last week initiated a communications campaign to solicit information about stalled projects around the country from its members and allied professionals.
| Nov 28, 2011
Leo A Daly and McCarthy Building complete Casino Del Sol expansion in Tucson, Ariz.
Firms partner with Pascua Yaqui Tribe to bring new $130 million Hotel, Spa & Convention Center to the Tucson, Ariz., community.
| Nov 28, 2011
Armstrong acquires Simplex Ceilings
Simplex will become part of the Armstrong Building Products division.
| Nov 28, 2011
Nauset Construction completes addition for Franciscan Hospital for Children
The $6.5 million fast-track, urban design-build projectwas completed in just over 16 months in a highly sensitive, occupied and operational medical environment.
| Nov 23, 2011
Lord, Aeck & Sargent opens fourth U.S. office, acquiring architecture firm in Austin, Texas
Strategic move offers growth opportunity and strengthens the firm’s historic preservation portfolio.
