Almost 80 million Baby Boomers are heading toward retirement and will be traveling, socializing, enjoying sports, culture, music, and a host of other activites. Boomers are about the largest demographic change America has ever seen. This group has the will and the vast numbers to change the nation's idea of the meaning of "senior life." The seniors housing industry's major trade group warns of a likely shortage of long-term care properties. The NIC for Seniors Housing & Care stated investor estimates are too low for the number of long-term care properties that will be neccessary for this wave of retiring Boomers. For property investors, this means increased demand for assisted-living and skilled-nursing properties.
The first wave of Boomers hit in 2006 at the age of 60. Now, an estimated 8000 per day are hitting retirement, which will produce 34-35 million retirees by 2009. The high numbers are creating a "Gray Wave" that is sweeping across America, making immense changes in consumer and lifestyle choices. One big change happening now is where and how retiring Boomers plan to spend retirement. Who wants to give up secure surroundings and move when at the period in life when moving is difficult? Many Boomers are looking for alternatives that allow them to stay in familiar surroundings while dodging stresses involved in a move to a retirement facility.
The concept of a purposeful approach to growing old in one place is tagged as "aging in place." A better concept, and one more in keeping with Boomer's retirement ethos, is "Forward LivingTM," creating an environment with adaptive technologies for living in comfort, living independently, and living safely while aging, all the while staying at home and not having to move.
Concomitantly with living longer at home and staying more productive than previous generations, there is a pending shortage in quality retirement facilities. Present research identifies a critical and growing shortage in retirement and care facilities; there is no long-term forecast for how these shortages will effect Boomers. Living at home is, more often than not, the best and most peaceful way to grow old. The Christian Science Monitor recently stated seniors spend close to $2 trillion--a very large percentage of US economic activity, and it will only increase.
Investments in Senior Housing may be an excellent method to ensure your parents or you and your loved ones ride peacefully into the sunset.
Taunya Fagan Real Estate, giving you the advantage...®
Montana Recreation - Montana Hunting - Montana Fishing
No question that the Boomers will impact the real estate market Taunya, but I think the next housing boom may still be a bit away. See what happened over the weekend to the Financial Markets check out this post.
Stefan,
The entry was meant to describe a pending, multi-year boom, with no time-frame, but, thanks, I changed the title...
Tauya
After many requests I have agreed to start a Real Estate Trends Group here on ActiveRain and will be providing regular updates and discussions on what is happening in our wonderful industry. You can join the group here.
Please join and invite any of our colleagues or friends to join in the discussions we will be having.
Best wishes
Stefan
Taunya,
You make some excellent points about the coming challenge of the 78 million aging Baby Boomers. Most are convinced that they are never going to get old. The ones dealing with aging parents, however, are making plans for their own future that will allow them to age in their own homes.
My husband Bill is a Certified Aging in Place Specialist (CAPS) and was the first Contractor in the State of Delaware to become certified almost 5 years ago. We have been preaching the concepts of Aging in Place to both our Remodeling clients and our Boomer real estate clients. Most of the national builders, even those building Active Adult Communities, are still not building homes that incorporate the principles of Universal Design. Just building a ranch style home or offering a first floor master doesn't mean that it will provide "Forward Living" as Boomers age.
As you are showing homes to your Boomer clients, look for the following at a minimum
For more information about Universal Design and Aging in Place, you can visit Gotcha Covered, our Remodeling company web site.
I think it is also fair to say ... that since retirees are living so long ( and this is a great thing ) they are tending to move closer to their family --- and leaving traditional retirement areas. Hence the need for a "local" active adult community in areas where their families are living and working. Because we all know that --- the family will ultimately become the caregivers --- physically and or emotionally, therefore, they want to live closer to those they love. So, we see a resurgence of people relocating from Florida, NC and other traditional retiree states to NEW JERSEY!
Great point Pamela, even the high taxes can be overriden by the desire to be close to the grandchildren! So many people from New Jersey are only thinking of Delaware initially because of the much lower taxes. They take the Delaware Memorial Bridge and ask themselves if being a couple of hours away is close enough. For many Boomers in this area, howeve, they have one child in New Jersey, one in the DC area and maybe another in Philadelphia. In that case, Delaware is the perfect choice, right in the middle, until one of the children moves!
Thanks for the great responses everyone and sorry for the snail's response...apologies for letting these slip by. Stefan, I joined your group today...