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
Luxury Residential | Jan 30, 2024
Lumen Fox Valley mall-to-apartments conversion completes interiors
Architecture and interior design firm Morgante Wilson Architects (MWA) today released photos of its completed interiors work at Lumen Fox Valley, a 304-unit luxury rental community and mall-to-apartments conversion.
Airports | Jan 30, 2024
Rafael Viñoly Architects’ design for the new Florence, Italy, airport terminal will feature a rooftop vineyard
At Florence, Italy’s Aeroporto Amerigo Vespucci, the new international airport terminal will feature a fully operating vineyard on the facility’s rooftop. Designed by Rafael Viñoly Architects, the terminal is expected to see over 5.9 million passengers annually. Renderings for the project have recently been released.
Giants 400 | Jan 29, 2024
Top 160 Workplace Interior Architecture Firms for 2023
Gensler, Interior Architects, HOK, SmithGroup, and Perkins&Will top BD+C's ranking of the nation's largest workplace interior and interior fitout architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Laboratories | Jan 25, 2024
Tactical issues for renovating university research buildings
Matthew Plecity, AIA, ASLA, Principal, GBBN, highlights the connection between the built environment and laboratory research, and weighs the benefits of renovation vs. new construction.
K-12 Schools | Jan 25, 2024
Video: Research-based design for K-12 schools
Two experts from national architecture firm PBK discuss how behavioral research is benefiting the design of K-12 schools in Texas, Florida, and other states. Dan Boggio, AIA, LEED AP, NCARB, Founder & Executive Chair, PBK, and Melissa Turnbaugh, AIA, NCARB, Partner & National Education & Innovation Leader, PBK, speak with Robert Cassidy, Executive Editor, Building Design+Construction.
Women in Design+Construction | Jan 25, 2024
40 Under 40 Class of 2023 winner Kimberly Dowdell inaugurated as AIA 2024 President
The American Institute of Architects (AIA) has announced the inauguration of Kimberly Dowdell, AIA, NOMAC, NCARB, LEED AP BD+C, Principal and Director of Strategic Relationships at HOK and BD+C 40 Under 40 superstar, as its 100th president.
Senior Living Design | Jan 24, 2024
Former Walgreens becomes affordable senior living community
Evergreen Real Estate Group has announced the completion of Bellwood Senior Apartments. The 80-unit senior living community at 542 25th Ave. in Bellwood, Ill., provides independent living options for low-income seniors.
AEC Tech | Jan 24, 2024
4 ways AEC firms can benefit from digital transformation
While going digital might seem like a playground solely for industry giants, the truth is that any company can benefit from the power of technology.
Giants 400 | Jan 23, 2024
Top 60 Parking Structure Architecture Firms for 2023
Choate Parking Consultants, Page Southerland Page, Gensler, AO, and Elkus Manfredi Architects top BD+C's ranking of the nation's largest parking structure architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
