"Boomers" Are Different

Did you know that the National Assoc of Home Builders (NAHB) has a “50+ Housing Council” that caters exclusively to the growing “baby-boomer” generation? That’s the kind of attention this age group is sure to receive as the number of households in the 55+ age group is expected to grow from its current 38% to almost 45% of households, by the year 2019. And, that group has high homeownership rates: while the U.S. as a whole has about a 67% ownership rate, those 55 to 74 own homes at an 80% clip.

With this shift in demographics comes a whole new set of preferences as it relates to home purchases according to John Migliaccio, director of research at MetLife’s Mature Market Institute, which survey consumers and builders on retirement issues. “Very telling is that the younger group of mature consumers reported enthusiastically that they want services like home maintenance and repair as part of their next home purchase, along with services usually connected to older homeowners such as housekeeping, on-site health care and transportation,” he said.

Downsizing is a trend that is taking hold among all housing consumers, but it’s particularly evident among the 55+ crowd that includes the older baby boomers. Some of the most important design features that these boomers want in their homes center on the practical: good storage, energy efficient windows that open easily, easy-to-use thermostats, bigger bathrooms with grab bars, wider doorways and entrances without steps.

Among technology features, older home buyers tend to act like younger buyers when it comes to the basics in that both groups have a preference for security systems, energy management, structured wiring and lighting controls. Less important to the older buyers are home theaters, distributed audio or complete home automation systems and exercise rooms.

Amenities aren’t the only change taking place. Newly released data from the NAHB found that the average size of a new home fell to 2,480 square feet from 2,520 feet in 2008. Homeowners surveyed by Better Homes and Gardens magazine said downsizing was becoming a bigger priority. While the small-house movement in the U.S. has been gaining steam for a number of years, the recession has accelerated it. The Village has felt the impact of this downsizing phenomenon as the average price of homes sold this past year has declined to $193,000. In fact, there have only been eight Village homes sold this past year that were over $500,000 (RE/MAX sold 7 of those 8 as the listing company).

Local builder, Carriage Homes has built over 150 Hot Springs Village homes since 2007. “We were building 3,000+ square foot homes and having no trouble selling them up until the end of 2008,” said Doug Rodgers, owner of Carriage Homes. “Since then, we’ve found the “sweet spot” seems to be more in the 2,300 square foot size. Folks still want all the upgrades like granite counters, hardwood floors, bonus rooms above the garage and tall ceilings, but they want the package to be smaller. More than ever, customers are asking what our home’s “R” factor is and whether we use Energy Star appliances,” said Rodgers. “We were early in the game to reflect consumer’s desire for “green” construction standards and while it costs a bit more, the energy savings continue for the life of the home.”