Boomers want modest homes, easy living

From the NAHB -- The current housing downturn has taken some steam out of housing demand from the 55+ population, but a “55+ Housing: Builders, Buyers and Beyond” survey conducted in February by NAHB and the MetLife Mature Market Institute identifies significant opportunities in this market for both builders and remodelers at a time when a weak economy has forced households across the age spectrum to reassess how much housing they can afford.

The research was conducted largely to determine how well builders were meeting the preferences of this age demographic, and the results found that the industry was largely on the same wavelength as its potential customers.

The 1,500 consumers participating in the survey showed a strong preference for single-family detached homes in a suburban setting. Despite recent housing price declines, members of this group have retained considerable amounts of equity or other financial assets, giving them the wherewithal to purchase the relatively modest-sized homes that are shaping up as the mainstay of this market.

Low-maintenance and the availability of various services emerged as key concerns for 55+ households, and unlike their counterparts from just a few years ago, these consumers exhibited a strong desire for technology-driven amenities, particularly high-speed Internet access.

Compared with survey responses from 254 builders who specialize in the 55+ market, consumers were not as aware of many universal housing features as they should be. And like the general population, they started losing some of their enthusiasm for green building principles when it came time to start paying for products that are priced at a premium. Builders, the survey found, will have to lead and educate 55+ prospects in both of these areas.

At a Sept. 23 “55+ Housing by the Numbers — Part II” webinar focusing on the newly released survey findings, NAHB Chief Economist David Crowe noted that the market has gained some ground since the polling was conducted early this year, when consumers were watching their savings dwindle and builders were seeing sales grinding to a halt.

“But the study does reflect the very latest in the changing perceptions of what is most important in housing for this age cohort,” Crowe said.

A ‘McMansion Revolt’
From a builder’s perspective, a viable 55+ market is taking shape, according to Steve Bomberger, president of Benchmark Builders in Wilmington, Del.

“We are seeing purchasers looking for smaller or more modestly sized homes than in the past,” Bomberger said. Previously, it was common for the husband to come into the sales office and complain that the homes were too small. “We don’t hear that anymore,” he said. “Most 55+ households are not looking for the grandiose styles of the past; there is a McMansion revolt in the 55+ market.”

Survey results confirmed that most 55+ consumers are not interested in buying a larger home. Although preferences for size tend to increase with household income, the current home of those surveyed measures a median 1,886 square feet, close to their preferred median home size of 1,903 square feet.

However, Bomberger observed that it will be “a little tough” to include everything these buyers want in this sized home. More than half (51%) of the respondents preferred three bedrooms, and another 18% four bedrooms or more. They also wanted two baths and a two-car garage.

Bomberger said that his customers “are spending less on luxury.” They typically are looking at ceiling fans, sun room additions and finished basements — “an opportunity to get more space for the buck,” he said.

“It’s all about technology,” he added. “Today’s buyers are techno-charged,” and they are asking for computer niches, structured wiring, multiple television jacks, mounted flat TV screens, programmable thermostats and advanced security systems that include smoke detectors and fire alarms. “They are not afraid of gadgets that have a lot of buttons and a lot of lights,” he said. “Today’s buyer is computer savvy, a big change from 10 years ago.”