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
| Sep 28, 2022
New digital platform to foster construction supply chains free of forced labor
Design for Freedom by Grace Farms and the U.S. Coalition on Sustainability formed a partnership to advance shared goals regarding sustainable and ethical building material supply chains that are free of forced labor.
| Sep 27, 2022
New Buildings Institute released the Existing Building Decarbonization Code
New Buildings Institute (NBI) has released the Existing Building Decarbonization Code.
| Sep 23, 2022
High projected demand for new housing prompts debate on best climate-friendly materials
The number of people living in cities could increase to 80% of the total population by 2100. That could require more new construction between now and 2050 than all the construction done since the start of the industrial revolution.
| Sep 23, 2022
Central offices making a comeback after pandemic
In the early stages of the Covid pandemic, commercial real estate industry experts predicted that businesses would increasingly move toward a hub-and-spoke office model.
| Sep 22, 2022
Gainesville, Fla., ordinance requires Home Energy Score during rental inspections
The city of Gainesville, Florida was recently recognized by the U.S. Dept. of Energy for an adopted ordinance that requires rental housing to receive a Home Energy Score during rental inspections.
| Sep 21, 2022
New California law creates incentive for installing outdoor dining safety barriers
A new California law provides an incentive for commercial property owners to install barriers to protect outdoor diners.
| Sep 21, 2022
Demand for design services accelerates
Demand for design services from U.S. architecture firms grew at an accelerated pace in August, according to a new report today from The American Institute of Architects (AIA).
K-12 Schools | Sep 21, 2022
Architecture that invites everyone to dance
If “diversity” is being invited to the party in education facilities, “inclusivity” is being asked to dance, writes Emily Pierson-Brown, People Culture Manager with Perkins Eastman.
| Sep 20, 2022
NIBS develops implementation plan for digital transformation of built environment
The National Institute of Building Sciences (NIBS) says it has developed an implementation and launch plan for a sweeping digital transformation of the built environment.
| Sep 20, 2022
New Long Beach office building reflects Mid-Century Modern garden-style motif
The new Long Beach, Calif., headquarters of Laserfiche, a provider of intelligent content management and business process automation software, was built on a brownfield parcel previously considered undevelopable.
