Fueled by the baby boomer generation, the population of Americans 65 and older is growing exponentially and will become a major part of the housing and mortgage industries over the next several decades.
According to the latest report from the Harvard Joint Center for Housing Studies, one out of three U.S. households in 2035 will be headed by someone over 65. That’s an estimated 79 million people!
Meaning, real estate agents and mortgage lenders who plan sales strategies with an eye on the aging will surely see more success.
One unexpected backlash of the exodus to the suburbs over the last 40 years is the growing number of retirees realizing their neighborhoods no longer fit their needs.
In a recent survey from Freddie Mac, seniors said they need major renovations in order to stay in their current homes as they age, but the financial cost just isn’t worth it.
Many are also ready to give up driving all together, but suburbia often lacks downtown resources, as well as access to public transportation. Realizing their vulnerability may not come easy to Boomers, but reality eventually will.
As such, about 18 million homeowners over the age of 55 may be shopping for another house in the next few years. Some will relocate, but others will choose to downsize to a smaller, one-story house or buy a condominium or townhouse near their old home (as many see giving up their “dream home” to remain in their communities as a compromise they’re willing to make).
People older than 50 control an amazing 77 percent of the country’s total net worth. That kind of leverage translates to power—power to influence the policies of the community, as well as the future of its businesses.
For seniors in or about to enter retirement, home equity loans like the federally insured Home Equity Conversion Mortgage can be a terrific option. Call Bay Equity Home Loans if you have questions.
By hook or by crook, one thing is for sure: the senior population will transition from a niche market into a major specialization market in the coming years.