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NON-Buying Boomers
August 4th, 2015 11:29 AM

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Baby boomers (those born from 1946 to 1964) are expected to lead the next wave of renters, surpassing the millennial generation.  Those renting homes age 65 or older will reach 12.2 million by 2030, and more than double the level from 2010.  This will push up rent prices and spur on construction of more multifamily housing.

Boomers are entering the age range where they increasingly downsize and like the idea of no property taxes, no lawn maintenance, and little interior maintenance.  Some of the newly constructed rental units cater to baby boomers with affordable ground floor apartments, or larger units that have the latest technology and upgrades, such as touch-button window screens and wine refrigerators. 

One downside is that seniors on fixed incomes who have to, rather than choose to, rent will be hurt if supply does not keep up with the pace of demand.  Younger people will be competing for the same housing and it will put upward pressure on rents for all types of multifamily homes.  Already, rental vacancy rates are hovering near 21-year lows, pushing the median rental prices up and up for all types of homes.

On a positive note, many prominent builders are seeing the opportunity to design and build more multifamily communities looking to the future demand.  Commerce Department figures show an increase of 41% in new construction from just four years ago.  So, hopefully, the supply will keep up with the future demand.  Boomers who choose not to buy, but rent, should have some good options.

Posted in:Real Estate
Posted by Allen Doeringer on August 4th, 2015 11:29 AMPost a Comment

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