Baby Boomers Could Be Next Wave Of New-Home Buyers

Home builders will be looking to take advantage of the upcoming retirement surge. More Americans were born in the 1950s than any other decade, and many will be leaving the workforce in 2015 as they reach age 65. For builders, the trend offers an opportunity to appeal to a demographic that has better credit and more cash than younger buyers. Americans 55 and older are growing in both absolute terms and as a share of the population, states Paul Emrath, vice president at the National Association of Home Builders (NAHB). According to the group, households headed by someone 55 or older accounted for 43.3 percent of all households last year — an increase from 38.2 percent in 2007. NAHB researchers expect that number to hit 46.7 percent by the end of the decade. Emrath remarks, “It’s the baby boom effect, basically. It means that active-adult housing is likely to continue getting stronger going forward.” Steve Kempton of Taylor Morrison Home, describes the 55-plus buyer as a “very discretional buyer” in that many do not need to buy. “They’re choosing to buy,” he notes. Builder confidence in the single-family 55+ housing market rose nine points year over year in last year’s third quarter, according to NAHB’s 55+ Housing Market Index. That was the highest July-through-September reading since the index’s 2008 launch. | Read More