50+ Home Buyers Ready To Spend

Boomers aren’t afraid to ask for what they want — and they’re willing to pay for it.

The emerging boomer housing market will enjoy strong growth in the next decade, said NAHB Chief Economist Dave Seiders during a teleconference titled: “The Baby Boomer Housing Market: How the Aging of America Will Affect the Economy and the Future of Home Design,” held March 7.

“Boomers have a strong preference for home ownership,” Seiders said, and the rising flood of people entering this age group in the next 10 years will contribute to higher demand for 50+ housing.

Although many boomers and older Americans say they prefer to stay in their current homes to age-in-place, the demand for housing created specifically for aging Americans is strong. Numbers from the U.S. Census Bureau’s 2003 American Housing Survey show that 6% of all housing starts that year were in age-restricted or age-targeted housing. “As the boomers age, that number will grow,” said Seiders.

Georgia-based builder Norman Cohen said during the teleconference that in his company’s active adult communities, buyers are demanding more and more options. “Our customers are not looking for cookie-cutter homes, they want upgrades and options. We have about 300-400 pre-priced options, and we find that buyers come up with options we haven’t even considered. And they are willing to pay for them. They’ve sold their previous home and they have the money to get what they want.”

Cohen, 2006 chairman of NAHB’s 50+ Housing Council, said also that “most 50+ buyers are not looking for a new place to live, but for a change in lifestyle.” Aging home owners don’t want to have to worry about maintaining their homes. Cohen’s company, Camelot/Signature Development, does what he calls “lock it and leave it” communities, where all the painting, gutter cleaning, landscaping and other maintenance is taken care of.

Although there is a segment of the market looking for “destination communities,” most of the 50+ home buyers Cohen sees want to stay within five miles of where they used to live, or near their grandchildren or other family.

Another trend is that age-restricted communities are rapidly losing the stigma that used to be associated to them. “When my company began building active adult six years ago, 'age-restricted' had a negative connotation, but now that’s changed," Cohen says. "It’s a positive because a lot of 50+ buyers want to be in a community with people like them. So many people are interested in it that it doesn’t concern me about advertising that as a feature because people are seeking it out.”

Seiders predicted that the demand for age-restricted housing, which is allowed under a 1995 exemption to the Fair Housing Act, will keep growing. [Return to top]