Boomers Are Ready to Remodel

Check out this excerpt from a recent post by Hallie Busta at Custom Home 2012, a Hanley Wood publication:

As analysts talk of home prices hitting bottom, and as an increasingly disproportionate number of home-owning seniors look to sell and downsize, first-time buyers may begin to scoop up these properties. But industry experts agree that for the time being, seniors outnumber young, mortgage-worthy buyers, pushing the latter to hold back. The report notes that by 2030, baby boomers will have added 30 million people to the senior population, at which point the segment will account for 20 percent of the overall U.S. population, with two-thirds of this group being older than 85 years. Nate Berg writes for The Atlantic Citiesthat with 10,000 individuals in the U.S. turning 65 years old daily through 2020, where and how these seniors live will be important for monitoring shelter opportunities available to aging populations. The fact that the Echo cohort at best could add 18.8 million households on top of a 6.7 million household gain from other generational groups by 2020, according to the report, means the ball is in the remodelers’ court.

Rolf Pendall, the study’s co-author and director of the Metropolitan Housing & Communities Policy Center at the Urban Institute in Washington, D.C., says demand to match the caliber of senior-owned homes entering the market isn’t likely to pick up for another five to eight years. Meanwhile, seniors are turning to remodeling and retrofitting to make their homes compatible spaces for aging in place—a trend that represents a significant shift from the group’s historical impact on new construction, he says.

Check out the rest of this report here.

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