There has been a lot of reporting about the impact of the aging population on housing trends, not only here in Colorado, but across the country. To understand why, we first have to look at the projected numbers of boomers between now and 2050. Per the US Census Bureau, the United States will experience rapid growth in its older population (those aged 60 and older). By 2050, the number of Americans aged 60 and older is projected to be 88.5 million, more than double its population of 40.2 million in 2010. Baby boomers, those born between 1946 and 1964, are largely responsible for this increase in the older population, as they began crossing into this group in 2011.
The aging of the population will have meaningful impact and challenges for social and economic issues throughout the system. One of the major impacts will be the housing landscape for not only seniors but younger populations as well. The Wall Street Journal recently reported that boomers will boost demand for apartments, condos, townhomes and single level living spaces.
The Daily Real Estate News states that “this is a normal transition” for people as they enter their 50’s and 60’s, but the large demographics of this aging population “represents a potentially massive shift in the nation’s housing demand. Based on demographic trends, the nation should see a stronger rebound in multifamily construction than in single-family construction in the years to come.”
Kansas City Fed senior economist Jordan Rappaport writes: “By the end of the decade, multifamily construction is likely to peak at a level nearly two-thirds higher than its highest annual level during the 1990s and 2000s.” Rappaport comments, “Suburbs seeking to retain aging households may need to re-create a range of these urban amenities and enact some rezoning to encourage multifamily construction.” He adds that the projected shift from single-family homes to apartment, condo, and townhome living will likely put downward pressure on single-family prices.”
Seniors as well as those currently in their 50’s should recognize the impact these numbers will have on them for housing and their ability to maintain equity and livability in large homes. Smart seniors should understand their choices for downsizing now. We are specialists in helping seniors evaluate the information; how it may or may not pertain to them; then help them build a plan of action. These changes will arrive upon all of us as quickly and unexpectedly as a Tsunami wave. Don’t get caught in the swell! . We have resources to help you get where you want to go!
Joan Toohey and Rochelle Faraco are the founder of Seniors Solutions of Colorado. Read more about them at www.SeniorsSolutionsOfColorado.com