Though it may sound unpredictable, the number of households owned by people who are older than 65 has been growing for the recent 7 years and constitutes over 30 million homes nowadays. There is nothing surprising that retired people want to live in silence and comfort, so they choose detached homes, cottages, and townhouses for this purpose. For real estate agents, it means that senior people constitute a significant number of potential clientele. Consequently, agents should be prepared for such deals and be able to meet expectation of such buyers and sellers. As a result, they should be aware of the real estate trends and statistics regarding senior people too. Here are 5 factors to consider:
- The number of single households keeps growing
More people of the elderly age have to or prefer to live alone. This number increases by 59% among people who are over 80 and it is quite clear why it happens so. It means that such people need more affordable household units with certain supportive services and necessary facilities.
- Elder generations live with relatives of other generations
It goes without saying that elderly people need help and support, so there is nothing surprising that they live with one or several of their relatives from other generations. The number of multigenerational households has increased by 20% for the recent 15 years. What is interesting, the biggest number of senior people (over 9 million people) live with their grown-up children or grandchildren. As a result, the choice of housing for such families should meet the requirements of both parties.
- They live in single-family homes
Retired people prefer to spend their elderly age in the detached home away from the rat race of the city centers. 80% of such people live in private homes, though many of them are quite old and require repairment.
- They are wealthy enough to afford a good house
Having worked for dozens of years and retired senior household owners are very similar in their average income. They have worked hard to build their net wealth which is over $300,000 on average among people aged between 50 and 64. It means that such a family can easily buy a good house, unlike younger people who have to rent their dwelling most often.
- Many face money burdens
Despite the fact that many families manage to earn a decent net wealth, the number of people who experience a cost burden in the elderly age is also growing. Over 10 million households have to give away 30% of their income for housing, while 5 million of them are referred to ‘severely burdened’ and pay half of their income for dwelling. Real estate agents should consider this fact evaluating home prices and senior people’s possibilities.
Since the percentage of household owners aged over 65 is growing and will increase by 34% in 2038 according to the report of the studies conducted by the students of Harvard University, it is important to consider the needs of this generation of potential buyers and get the idea what is preferred by them most of all.