New research shows that consumers aged 55 and older will buy more than half of the new U.S. homes in the next five years.
The 79 million Americans who are age 55 and older have more wealth than any other group, which makes them not only the most attractive demographic for home builders, but also the one that is most likely to purchase a home.
NAHB senior vice president Sharon Dworkin Bell spoke about this and other compelling data about Baby Boomers at Epcon’s annual conference of Franchise Builders inColumbus, Ohio. She pointed out that Metrostudy research predicts that people 55+ will buy more than half of the new homes sold in the next five years.
In addition, Bell told attendees that nearly half of the 55-and-older home buyers in 2013 were able to purchase their homes without a mortgage, citing data gathered by Census Bureau’s American Housing Survey. Not only do 55+ buyers have the wealth to purchase homes, they create substantial wealth in their communities, Bell says. A 100-unit, 55+ community can create $2.3 million in tax revenue for its local municipality in the first year of construction alone, the NAHB reports.
As a result of people living longer and healthier lives, there is a massive demand for active adult housing, and there are not enough builders focusing on the needs and desires of 55+ buyers to meet that demand, she concluded.