Gen X is already looking for housing appropriate for aging in place

Baby boomers are exhibiting an overwhelming desire to age in place in their own homes, but their children — largely members of Generation X — are also making their desires felt by seeking out homes that can accommodate their needs as they get older, according to a recent report from the New York Times.

Citing 2021 data from the Harvard University Joint Center for Housing Studies that showed 88% of adults 65 and older are aging in place, many members of the following generation — primarily born between the mid-1960s and early-1980s — are already taking proactive steps to by thinking “about where they will live in their 70s, 80s and even 90s,” the Times reported.

Homebuilders are observing a rise in demand for homes that can accommodate natural aging from Gen X buyers. David O’Reilly, CEO of Howard Hughes Holdings which constructs planned communities, describes the market being “at the cusp,” saying that the demand appears to be coinciding with more members of Gen X nearing a time where they will become “empty nesters.”

“That’s normally the tipping point,” O’Reilly told the Times.

Gen X buyers are also more likely to have more financial means and control over their potential options, and are keeping access to necessary later-life services in mind when choosing where to live as they get older, the story explained.

“In new developments, [Gen X buyers] are seeking access to health and wellness amenities, like hiking trails and tennis courts, as well as opting for home features like showers instead of bathtubs, for instance, and asking for the latest gadgets to help them as they age,” the reporting said.

A report released last week by the National Association of Realtors (NAR) said that Gen X homebuyers have a median income of $126,900, and are still years away from retirement. That additional working time will allow them to amass further wealth according to Jessica Lautz, deputy chief economist and vice president of research at NAR.

Members of Gen X are also benefiting from the pandemic and post-pandemic run-up in home prices, carrying significantly more home equity than their millennial counterparts and dwarfing millennial homeownership rates 72% to 55% as of 2023.

One analyst said that Gen X buyers are motivated to act now for aging-appropriate housing due to the state of the housing market.

“If they are shopping for homes, given the tightness of the market and remote work, I do believe you see more Gen X-ers seeing a home purchase as a home for the rest of their lives,” said Cristian deRitis, deputy chief economist at Moody’s Analytics to the Times.

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Housing supply will be impacted as more Americans age in place

By Didier Malagies • 12 Nov, 2024

There is likely to be a “modest” amount of excess home supply driven by demographic changes as older homeowners move out of their homes or die. But the aging U.S. population is not expected to be an outright source of change to home-price projections over the next 10 years, according to a newly updated report on homes owned by baby boomers . “First, based purely on changing demographics, over the next decade there was projected to be a modest amount of excess supply of homes for sale as older homeowners age and die — around a quarter million units annually,” according to the report published by the Mortgage Bankers Association (MBA). “Second, housing supply and demand shifts from changing demographics are slow moving and highly predictable, which suggests that there would not be measurable effects on house price growth from population aging and mortality.” The report projects that over the next decade, there will be a “negative excess supply of homes for sale,” which will fuel a demographic mismatch between supply and demand during that time. Much of this is driven by the fact that baby boomers, as previously documented , are not selling their homes at the same levels as previous generations. “Since 2015, there has been a sizable increase in the homeownership rate among those 70 and older,” the report said. “This, combined with a larger base of older Americans from the aging of the baby boomers, has led to a greater number of existing homes held onto longer. “In contrast, pre-2015 homeownership patterns would have predicted that these homes would have been sold. So, older Americans are holding onto their homes longer, and there are more of them.” This could serve to raise existing home supply in future years, but demand will continue to outpace supply in the here and now. “The findings highlight the varying patterns for older Americans as shifting demographics, the pandemic, and overall buyer attitudes have impacted buying and selling decisions,” said Edward Seiler, executive director for the Research Institute for Housing America and associate vice president of housing economics for the MBA “It is evident that older households are aging in place , leading to updated predictions that show that there will be no excess supply of homes to the markets from older Americans moving or dying over the next decade. The report also projects that there will be “over 8 million homes supplied by older Americans as they age and die,” which will rise to roughly 9 million over the next decade. Of that total, “approximately 1 million will be due to the death of older Americans.”

Small Business Emergency Bridge Loan

By Didier Malagies • 11 Nov, 2024

ender's 1% Down Payment program is designed to make homeownership more accessible for eligible first-time buyers by lowering the upfront costs typically required for a mortgage. Here's a breakdown of how the program generally works: How It Works 1% Down from the Borrower: The borrower contributes just 1% of the home purchase price as a down payment. 2% Contribution from Lender: Lender covers an additional 2% of the down payment, allowing the borrower to start with a total of 3% equity in the home. Eligibility: Borrowers must meet certain income and credit score requirements. The program often targets lower-income buyers or those who qualify for special financial assistance. Key Features and Benefits Low Entry Barrier: The reduced down payment can make homeownership achievable sooner for first-time buyers or those with limited savings. Conventional Loan: The loan is structured as a conventional mortgage, which may help borrowers avoid some of the restrictions associated with government-backed loans like FHA loans. Potential Mortgage Insurance: Depending on the loan details, borrowers may need to pay private mortgage insurance (PMI) until they reach 20% equity. Other Considerations Interest Rates: Rates and terms are subject to typical mortgage rate changes, so it's advisable to check the current rate before applying. Credit Requirements: There may be a minimum credit score requirement, though this is typically more flexible than for standard conventional loans. The 1% Down program can be an excellent option for buyers looking to make homeownership more affordable. tune in and learn at https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

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By Didier Malagies • 06 Nov, 2024

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