Right House, Right Place, Right Time: Home Community & Lifestyle Preferences of Boomers & Seniors available in Paperback, eBook
Right House, Right Place, Right Time: Home Community & Lifestyle Preferences of Boomers & Seniors
- ISBN-10:
- 0867186283
- ISBN-13:
- 9780867186284
- Pub. Date:
- 01/01/2008
- Publisher:
- National Association of Home Builders
- ISBN-10:
- 0867186283
- ISBN-13:
- 9780867186284
- Pub. Date:
- 01/01/2008
- Publisher:
- National Association of Home Builders
Right House, Right Place, Right Time: Home Community & Lifestyle Preferences of Boomers & Seniors
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$39.95Overview
Product Details
| ISBN-13: | 9780867186284 |
|---|---|
| Publisher: | National Association of Home Builders |
| Publication date: | 01/01/2008 |
| Edition description: | None |
| Pages: | 160 |
| Product dimensions: | 6.90(w) x 9.90(h) x 0.40(d) |
About the Author
Read an Excerpt
CHAPTER 1
45+ Middle-American Housing Market Sectors
The 45+ age-group is not monolithic. Rather it is a collection of market segments that vary not only by generation and income, but also by the types of homes and communities desired and the price people are willing to pay for a home. People in these markets may be single or married, first-time homebuyers or second-home buyers, working or retired, gardeners or golfers. This chapter defines the various sectors that differentiate this demographic and their home buying preferences and behaviors from one another. Information about these sectors and various subcategories within them are used throughout the book to help the reader make sense of the market data.
Nearly half of our customers today report they are still working, about 40% full time. It can really be a challenge to achieve a robust lifestyle around a working schedule. More attention needs to be paid to facilitation of resident connections and off-hours scheduling.
— DAVE SCHREINER
Vice President of Active Adult Business Development Pulte Homes, Inc. Scottsdale, Arizona
People in the vast age-group that comprises buyers 45+ years old may be just beginning a family or finding single life again after 60 years of marriage. Some of them are just reaching their stride in their careers, while others may be starting a new career. Many are ending paid employment altogether. At the same time, more and more are thinking about cutting back or changing the scope of what they do, but not quitting work entirely. Some retirees will be globe-trotting; others will be immersed in civic duties; still others may be taking on new familial roles. All of these factors — stage of life, interests, and passions — will determine when, where, and to what type of home and community these buyers will gravitate, or whether or not they will move at all.
Life Stages
Admittedly, housing choices and preferences differ among age-groups, but these differences may not be a function of people's age as much as they are a result of their particular life stage — obligation, transition, or discretion. For example, the 55–64 age-group is split nearly evenly between respondents who have obligations (44%) and those who have reached the discretionary stage of life (43%). Thirteen percent in the 55- to 64-year-old group are in the transition stage.
Among younger boomers, those in the 45- to 54-year-old age-group, almost 90% are in the obligation stage. During the obligation stage of life, people have two primary drivers: work and family. These two demands govern daily schedules; and decisions about where to live revolve around being close to work, providing a high-quality living environment, having access to good schools, and, if possible, being near other family members who can share responsibilities. Therefore, obligation stagers may not even consider moving until after children have left home for college, until responsibilities to elderly parents have been fulfilled, and/or until they change jobs.
The transition stage may last from a few months to several years. Transitions include
* planning to leave or leaving employment
* watching children leave home (or, perhaps, return home)
* becoming single again because of a divorce or the death of a spouse
* experiencing the death of parents
People in transition often are in the throes of making decisions about where they want to live and what they want to do as a result of this change in their daily lives.
Those in the discretion stage have moved beyond the obligation stage and have more freedom, flexibility, and choice in how they spend their time and lives. Some discretion stagers are adamant about doing what they want to do when they want to do it. Others may have traded a life of paid employment and care for children for one full of voluntary commitments to churches, causes, and grandchildren. Despite their full calendars, however, those in the discretion stage usually have greater control over what they do and when than their counterparts in the other two stages.
Household Income
Many heads of households may have ended their paid employment and therefore may be living on retirement savings and Social Security. However, although their incomes may be lower, their homes may have appreciated significantly and they may have investment assets in other real estate and retirement accounts.
As a rule, however, as income increases, so does the proportion of people that will move to a new home (fig. 1.1). Twenty-three percent of respondents with incomes of less than $30,000 are likely to move in the future compared with 37% or more of households with $100,000 or more in annual household income.
Still, household income by itself is not necessarily a predictor of whether or not that household will move in the future, particularly when one observes the likelihood of moving for individuals within the same age-groups, especially those 45–54. Within that group, those with the lowest incomes are as likely to move in the future as those with higher incomes. Also, householders ages 75+ with the highest incomes are the least likely to move of any group — by age or income.
Home Value Influence on Relocation
When home values are considered, across all age-groups, households with the lowest home values (less than $150,000) were the least likely to move. Still, a significantly greater proportion of 45- to 54-year-olds with the lowest home values are likely to move than people ages 75+ with the highest home values (more than $400,000).
Housing Preferences by Region
The region of the country in which householders live also influences the probability that they will move and their preferences for attributes of a new residence, neighborhood, and community. Therefore, responses for some survey questions are shown by ZIP Code region or the respondents' primary location of residency. A ZIP Code region map and table are included in Appendix A.
The lowest percentage of respondents who said they were likely to move in the future was in the Northeast (23%) and the Southeast (23%). The highest percentage was in the West, where 37% said they were likely to move in the future.
By census region, heads of households in the Northeast ages 45+ were the least likely to move and, again, those in the West were the most likely. While 25% of the Northeasterners said they were likely to move in the future, 32% of Western U.S. residents said they were likely to move (fig. 1.2). A list of census regions appears in Appendix B.
Active Adult or All-Age Community
The proportion of households that plans to move to an active adult community or that would consider moving to an active adult community has increased significantly in the past few years. Among households ages 45+, 22% are likely to move to an active adult community and 36% might move to an active adult community. Forty-two percent are likely to move to an all-age community (fig. 1.3). Many studies contrast those who prefer to move to an active adult community with households that prefer to move to an all-age community. These studies show that the householders who prefer to move to an active adult community are more active. The active adult householders are more likely to indicate that they participate in more recreational, educational, cultural, and sports activities and do so more frequently than their counterparts who prefer to move to all-age communities.
In contrast to an all-age community, in which homes are sold to people regardless of their age, an age-qualified active adult community is a community designed to provide housing exclusively for people 55+. These communities must comply with the Fair Housing Amendments Act to exclude younger households. The communities often provide any or all of the following:
* maintenance of community amenities and common spaces
* lawn and landscaping services
* exterior home maintenance
Other active adult communities may offer nothing more than an age-qualified community of homes. At the other end of the spectrum, some active adult communities have extensive amenities including the following:
* large and/or multiple community centers with outdoor and indoor swimming pools
* indoor walking tracks, golf simulation rooms, and bowling alleys
* ballrooms and theaters
* craft rooms for pursuits such as woodworking and electronics
* outdoor tennis courts, golf courses, and boccie ball courts
Housing Spending
The survey examined the preferences for homes and communities of 45+ middle-American households planning to move in the future. These households are categorized according to the highest amount they plan to spend on their homes. The largest percentage (28%) plans to spend $200,000–$299,999. The next largest group, 22%, plans to spend $400,000 or more. A breakdown including the remainder of households and their desired price ranges is shown in figure 1.4.
CHAPTER 2Key Demographics of 45+ MiddleAmerican Households
The survey included questions about marital status, employment, education, homeownership and home values, and size of 45+ households. In addition, heads of households were asked about "issues of housing as we get older," including whether respondents had any health impairments. Finally, respondents were asked about vehicle ownership, including recreational vehicles.
Marital Status
Although married-couple households became a minority of the total adult population in 2005, two-thirds of the survey respondents were married and another 3% lived with a domestic partner (U.S. Census, 2005a). One-third of the respondents were single. The number of single-person households will increase in the future because of changes in marital status and increased life expectancy. Longevity in general doesn't necessarily decrease the likelihood that one spouse will outlive the other. As married people age, they are more likely to be widowed. Only 2% of the 45–54 age-group is widowed, whereas 45% of people 75+ years old are widowed. With an ever-increasing proportion of single-person households, demand for home styles, sizes, and prices is likely to change.
A greater percentage of 45- to 54-year-olds than those who are ages 55+ are divorced, single and never married, or living in a domestic partnership. These statistics are consistent with two trends among adults in all age-groups today: marriage is being delayed, and marrying after becoming divorced or widowed is seemingly not as high of a priority as it used to be.
Currently, people who are married or widowed are more likely to own their homes than those who are divorced or separated, were never married, or are in a domestic partnership (fig. 2.1).
A change in marital status is significant not only because it changes living arrangements but also because it usually lowers a household's disposable income. In general, married-couple households have higher incomes and wealth than single-person households. When both spouses work, their combined income is even higher, and they can afford a higher priced house. In at least 72% of households with income of $100,000+, both spouses are working (Census 2005b).
Among heads of households in the 45+ age-group, 45% with annual incomes of less than $30,000 are married, compared with 88% of the group with incomes of $150,000 or more (fig. 2.2).
When looking toward future home sales, consider that although married heads of households have more income and wealth and can afford "more house," they also are less likely to be considering a move (fig. 2.3). At the same time, and contrary to what many believe, widows and widowers do not routinely move following a spouse's death. More specifically, widowers are slightly more likely to say they are never going to move compared with widows. The women are slightly more likely than the men to say they may move sometime in the future.
A range of home styles — including town-homes and condominiums — and price ranges may increase the opportunity to capture both single-person and married-couple home buyers, whatever their circumstances.
Education and Home Values
Homeownership is a common achievement for all groups, regardless of education or income. However, education, income, and wealth are inextricably tied, and these factors influence home buyers' interests and where they want to live.
The vast majority (96%) of 45+ middle-American heads of households have at least a high school diploma; 31% attended college; 24% have a bachelor's degree; and 15% have a graduate or professional degree.
Although education may be tied to wealth, it has not determined who will own a home; the data show that homeownership has been an achievable dream for all groups. Except for heads of households who completed only grade school, homeownership rates among middle-Americans who are 45+ years old top 90%, regardless of educational attainment. (For the former group, homeownership still tops 80%.) For most heads of households, particularly those in the lowest-income groups, the value of their homes is their largest single source of net worth.
Still, income and home values clearly correlate positively with level of education. No householders with less than a high school education reported an annual income higher than $99,999, whereas 37% of the householders with a graduate or professional degree reported their annual incomes exceeded $100,000. Moreover, 31% of 45+ middle-American heads of households with a graduate or professional degree own homes valued at $400,000 or more, but only 6% of house-holders with a high school diploma report the value of their home at $400,000 or more.
Markets in areas near universities and colleges and in other places in which adult educational attainment is comparatively high are likely to have more households with higher incomes.
Employment Status
Half of the survey respondents were retired, 29% were working full-time, 12% were working part-time, and 10% said they were not in the labor force. Because low-income heads of households were not part of the survey, the percentage of survey respondents who were working was less than for all 45+ U.S. households.
Considering the proportion of 45+ respondents who work at home (20%) and the 60% who own a computer (U.S. Census, 2005c), builders and other industry professionals can anticipate that more than half of these housing consumers might need space to work at home. Although most respondents who were employed full-time said they worked away from home (87%), 13% reported they worked from their homes (fig. 2.4). Among those who worked part-time, an increasing likelihood as people age, 37% worked from their homes. A combined 20% worked from their homes at least part of the time.
Similar to education, employment correlates positively with income. Seventy-six percent of the respondents who reported that their incomes were less than $30,000 also reported that they were not employed. In contrast, at least 63% of the heads of households with $70,000 or more in annual income were employed. Fully two-thirds of respondents with $150,000+ in annual income reported that they were employed fulltime or part-time.
Among respondents who were employed, 57% said that they will fully retire eventually, and 21% said they will gradually phase out their paid employment until they are fully retired. The remaining working respondents said they would continue to work part-time forever (12%) or continue to work full-time (9%). The median age at which respondents said they would fully retire was 66.
Projections indicate that the average age at retirement will increase. Some heads of households will have to continue to work out of necessity, and others will continue to work because they can and they want to.
Although a majority of survey respondents said they would completely retire, the age of retirement is increasing for two primary reasons. First, the age at which a person can receive full retirement benefits from Social Security is increasing gradually from 65 for those born before 1937 to 67 for those born in 1960 or later. (A person can take partial benefits at any time after age 62.) Second, many individuals believe they will alternate periods of not working with periods of working. So, although many say they plan to retire or are retired, many will return to the workforce.
(Continues…)
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Table of Contents
List of Figures,
List of Tables,
Preface,
Acknowledgments,
About the Author,
About 45+ Housing Consumers,
I WHO THEY ARE,
1 45+ Middle-American Housing Market Sectors,
2 Key Demographics of 45+ Middle-American Households,
3 Homeownership Among 45+ Middle-American Heads of Households,
II WHERE THEY LIVE,
4 Home, Location, and Satisfaction With Current Residence,
5 45+ Renter Households,
6 Movers: Those Planning to Move and Those Who Moved Recently,
III WHAT THEY WANT,
7 Preferences for Location, Home Site, and Community,
8 Preferences for the Style and Appearance of a Community,
9 Community Amenities,
10 Home Preferences: Footprint, Floor Plan, Style,
11 Rooms and Spaces in the Home,
12 What Home Buyers Expect, Want, and Will Pay,
Afterwords,
Appendix A: U.S. ZIP Code Regions,
Appendix B: U.S. Census Regions,
Glossary,
References,