Scale Your Business and Increase ROI by Building Homes for the 55+ Market
Economic conditions and changing demographics make now a perfect time for U.S. real estate investors to look for new opportunities. When considering new segments, the 55+ housing market represents a significant opportunity. This demographic is the largest and most underserved segment of buyers in the market today, making now the right time to develop communities to serve their needs. With a demand for low-maintenance, single family homes in the marketplace, you have an opportunity to scale fast and increase your ROI. Here’s why Baby Boomers are an excellent segment to target:
- There are 76 million Baby Boomers in the U.S.
- The 55+ housing market has shown year-over-year gains every year since 2012 and the demand is only growing.
- In 2017, 30% of home buyers were Baby Boomers.
- This segment is less dependent on financing than younger generations.
- The 55+ demographic controls almost two-thirds of the nation’s home equity (approximately $8 trillion) and accounts for $6.4 trillion in income.
Not only are there a lot of Baby Boomers, but they are also buying more homes as they start to retire and downsize. So whether you are looking to move away from commercial properties or are simply looking to diversify your portfolio, the 55+ housing market presents ample opportunity to accelerate your growth and capitalize on this underserved market.
There is also a lot of data that suggests the Baby Boomer market will be strong for years to come. According to the U.S. Census Bureau, the total population of 55+ Americans is projected to hit 100 million by 2020, and The Harvard University Joint Center for Housing Studies projects there will be 132 million Americans 50 years and older by 2030. Not only is this demographic large, they are also motivated and willing to buy. With so many 55+ home buyers, now is a great time to get started developing, as demand is exceeding supply.
What Makes a Successful 55+ Community?
The needs of the 55+ demographic are unique. Home buyers in this segment are nearing retirement age and are getting ready to downsize. Because of this, they are looking for less square footage, fewer bedrooms and less maintenance. When deciding on buying a new house this demographic is motivated by home features, amenities and neighborhood location.
Home Features the 55+ Buyer Will Love
Home features and personalization are important to the 55+ home buyer. A survey of the 55+ age group found that buyers are looking for high ceilings, natural light and sufficient storage space. Since lifestyle is the focus of this demographic, it is important for them to spend time with friends, entertain and continue their hobbies and other leisure activities. Communities offering detached condominium or patio homes appeal to the 55+ buyer more than a multifamily condominium or apartment complex.
Sell Homes Faster with the Right List of Amenities
This segment of buyers is looking for a variety of amenities offered such as planned social events, a clubhouse or a pool. Communities may also provide exterior home maintenance like lawn care, snow removal and trash pickup. These are all important to a successful 55+ community as they facilitate the type of lifestyle that appeals to the demographic.
Location, Location, Location
Location is arguably the most crucial factor to the 55+ home buyer. In fact, 71% of adults from 50 to 64 years old say they want to be in close proximity to family and friends. Without a perfect location, the 55+ demographic will not care about your perfect home features or plentiful amenities. It has been said before, location is everything. Baby Boomers don’t want to live in remote areas and instead wish to be near shopping, restaurants, medical services and grocery stores.
How Epcon Meets These Needs
At Epcon, we have done extensive research to build home plans that meet the unique needs of the 55+ home buyer. We feel this is why we have seen such success in the market. Our home plans can offer desired amenities such as a clubhouse and a pool to facilitate a sense of community. We also provide a home with less than 3,000 square feet, a key criterion for 66.7% of Baby Boomers when purchasing a home. And lastly, we have done extensive research to ensure that our community locations meet the needs of the 55+ home buyer.
Becoming an Epcon Franchise Builder gives you access to our business blueprint and can help you thrive in the 55+ market. We know what it takes to build for this unique market.
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