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Boomers Bucking Trend Toward Aging in Place
By
Stephen Baetge
Staff Writer
The
stated preference among American boomers and their parents is to
age in place, but a growing number of them – over 1.2 million – are
bucking this trend by moving into age-restricted communities designed
to meet their needs, according to a new study by the National Association
of Home Builders (NAHB) and the MetLife Mature Market Institute (MMI).
The movement toward age-specific communities by this generation is considered
a significant trend due to the impact they are expected to have on the graying
American demographic landscape.
By 2010, the boomer generation will represent one-quarter of the U.S. population,
and they will be significant players in the choices available in the housing
market.
“The baby boomers’ influence on housing choices has been profound,
and it will have a huge impact on trends in housing for the mature market as
that age group continues to move toward retirement,” stated MMI Director
Sandra Timmerman.
The multi-phased study, “Housing for the 55+ Market: Trends and Insights
on Boomers and Beyond,” examined a number of trends and behaviors of the
important boomer segment along with the population in general. The results were
released during NAHB’s “Building for Boomers and Beyond: 50+ Housing
Symposium held in Philadelphia.”
“Some findings, such as the tendency for buyers in 55+ communities to continue
to work in greater numbers and for longer periods of time, show us that this
group is redefining the traditional notion of retirement to suit their lifestyle
choices,” Timmerman analyzed.
The research included an in-depth profile of the over-55 market based on U.S.
Census figures from 2001 through 2007 and showed that the new homes being offered
to 55+ buyers and renters grew in size from an average of 1,800 square feet to
around 2,300 square feet during that time period.
Those who moved from their existing homes did so primarily for reasons relating
to their families, but the design and look of the community — and the quality
of the home, as well as the design and layout of the new residence — were
the factors most often considered by those who chose to move.
“NAHB has tracked the 55+ population and its share of the housing market
for decades,” stated David Crowe, NAHB’s chief economist. “But
this new data gives us our first look at specific consumer behaviors and preferences — what
they look for in a home, the reasons why they move and the characteristics of
the communities they choose — over an extended period of time.”
While the study found that most Americans over age-55 prefer to stay in their
current homes as they age, an increasing number (3 percent as compared to 2.2
percent in 2001) will opt for an age-restricted community designed to attract “active
adults,” with a heavy emphasis on lifestyle.
The analysis also confirmed that while most consumers were generally happy with
their current homes, residents of age-restricted, active-adult communities had
the highest satisfaction rates.
Crowe believes the data will be useful in meeting consumer demands in the near
future. “By examining emerging trends, we have a clearer picture of what
the mature market wants in their homes and communities, which give builders the
tools to build housing that will meet those needs,” he explained.
Those who were residents of multifamily dwellings often sought less expensive
homes when they moved, according to the researchers.
Of the baby boomers closest to the traditional retirement age of 65, many are
not yet planning to retire. They are looking for a community close to their place
of employment or one that allows them to transition into a work-from-home situation.
The number of people who chose a community close to work increased from 11.4
percent in 2001 to 16.6 percent in 2007.
While there is increasing interest in age-restricted housing among mature adults,
the number of units being built has decreased because of the recent economic
downturn.
Sales of new homes for active adults have also fallen off as interested buyers
either cannot sell their current homes or simply decide to wait for a more stable
market.
The MetLife Mature Market Institute is MetLife’s research organization
and a recognized thought leader on the multidimensional and multigenerational
issues of aging and longevity. MMI works to expand the knowledge and choices
for those in, approaching or caring for those in the mature market.
The National Association of Home Builders is a Washington, D.C.-based trade association
representing more than 200,000 members. NAHB is affiliated with more than 800
state and local home builder associations around the country. NAHB’s builder
members will construct about 80 percent of the new housing units projected in
2009.
This page and its contents ©2009
Metropolitan News Company, Inc.
