.The good news is – The NEW YORK Investors Business Daily is reporting that the 55 and older housing market is booming even while those in the younger age groups still seem to have a tepid view of home ownership.
Quoting a Pulte spokesman, IBD says there has been “consistent” upward movement in the seniors market for the past two years. According to Pulte “active adult” (that’s what I want to be) sales were 4,100 in 2011, and 5,300 in 2013 and also said sales in the first quarter of 2014 were up 7% over the same quarter last year and up in the second quarter by 11% compared to the same quarter a year ago. The newspaper said a key factor in the increase was improving sales of existing which is an indication that older homeowners were able to sell their properties and move into newer homes with features needed for an older lifestyle.
So here is the other side of that coin – the so called bad news. The Harvard Joint Center for Housing Studies has released a report which states that the nation is “ill prepared” to meet the housing needs for the aging population. According to Center research 37% of Americans 80 and older pay more than 30% of their income toward housing which causes them to skimp on food, healthcare. It also said that those in the 65 to 80 range are in the same shape as those above 80. However, the worst off are those in their 50’s & 60’s. The study also said that 70% of Boomers are still paying off mortgages, causing them to save less for retirement and many are supporting both older parents and younger adult Children. The Center called on government to immediately begin planning how to meet the demands of the senior population and poor elderly. Now, when is the last time you can remember when the government did anything immediately???
So, where do you want to go with this?? My preference would be to lean toward the “good news” side. I have been in this business over 43 years. We survived the disastrous years of the late 70’s and early 80’s – we saw the market adjust during those times. I think we will see it adjust again However, keep on top of this issue as we (seniors) should have the opportunity to be influential when the time comes – and it is coming.