June 2009

Trends In the 55+ Housing Markethousing

By Richard Shank

The MetLife Mature Market Institute recently released a report detailing housing trends for adults 55 years of age and better—the first in a series of reports on the 55+ housing market.

Based on data from the American Housing Surveys (AHS) conducted by the U.S. Census Bureau, the report profiles all household types and communities, outlining trends in age-qualified housing and consumer housing preferences for adults 55 years old and better.

The U.S. Census reports that the number of older adults has grown from 59 million in 2000 to 71 million in 2007, and projects that there will be nearly 85 million older adults by the year 2014. As a consequence, demand for housing that can meet the needs of older adults will rise, even in housing sectors where market shares have not or are not expected to change.

The following list indentifies key findings from this study:

  • The market share of age-restricted 55+ communities has grown 1% since 2001, and now stands at 3%.
  • Most respondents were happy with their housing choices, while residents in age-restricted communities reported the highest levels of satisfaction.
  • Design and appearance were the most important factors in housing choices for 55+ adults living in single-family homes, while proximity to friends and family was most important for older adults living in age-restricted communities.
  • In general, proximity to work, family, and friends are becoming more important factors in housing choices. Baby Boomers are working later into life than their predecessors and have a greater need to balance their work and family life beyond traditional retirement age.
  • Home buyers are far more likely to have some college education than before, increasing from 50% in 2001 to 73% in 2007.
  • Economic forecasts indicate that housing starts for the 55+ housing market will continue to fall until 2010.
  • The ethnic diversity of age-qualified and other owner-occupied communities is proving to be increasingly significant and will continue as demographic patterns further diversify nationwide.

To view the full report, visit the MetLife Mature Market Institute’s website: http://www.metlife.com/assets/cao/mmi/publications/studies/housing-for-the-55-plus-market.pdf

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