Looking for a growing niche market? Target boomers
WASHINGTON – May 8, 2014 – Fueled by aging baby boomers, the nation's older population is expected to nearly double in the next 20 years, the Census Bureau Reports.
The proportion of the total population 65 and older is projected to increase in all developed countries between 2012 and 2030; however, the United States should be one of the younger developed countries with only 20 percent of its population 65 or older in 2030. After 2030, the number of people 65 and older will still continue to increase until about 2050.
• When the first baby boomer turned 65 in 2011, there were just under 77 million people in the baby boom ages.
• The baby boom population is projected to drop to 60 million by 2030 (16.7 percent of the population) and to 2.4 million by 2060, when the youngest baby boomers will be 96 years old.
• In 2012, baby boomers comprised 24.3 percent of the U.S. population.
Although the baby boom population will decline in the coming decades, international migration will sustain the proportion of older adults in the U.S. Declines in births will lead to slower growth at the youngest ages, while longer life expectancies will keep the numbers higher for the 65-and-older population.
The demand for housing from older adults has not been lost on the home construction industry. The latest National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI) released today finds that the HMI increased four points in a year-to-year comparison.
It's the highest first-quarter reading since the inception of the index in 2008 and the 10th consecutive quarter of year over year improvements.
"There are many factors contributing to the positive signs in the 55+ housing market," says Steve Bomberger, chairman of NAHB's 50+ Housing Council. "Rising house prices and low interest rates are helping baby boomers sell their existing homes at a favorable price and, in turn, purchase a new home more suited to their current lifestyles."
There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Two components of the 55+ single-family HMI posted increases from a year ago: present sales rose six points to 52 and expected sales for the next six months climbed nine points to 62. Meanwhile, traffic of prospective buyers held steady at a reading of 41.
The 55+ multifamily condo HMI increased one point to 39, which is the highest first-quarter reading since the inception of the index. Two of the 55+ multifamily condo HMI components showed increases compared to a year ago: present sales increased four points to 41 and expected sales for the next six months rose five points to 48. Traffic of prospective buyers, however, decreased six points to 32.© 2014 Florida Realtors®