55+: Let Me Count The Ways To A Powerful Opportunity
June 11, 2018 // Franchising.com // Baby Boomers have dominated consumer markets for decades. Now, as this generation of 75 million Americans continues to pass the 55+ threshold, home builders are capitalizing on the demand for retire-in-place homes that have desired amenities for this demographic, with many exterior upkeep chores covered so residents can continue their active lifestyles.
- Approximately 32 million Baby Boomers plan to move.
- In 2017, 30% of homebuyers were over 55.
Unlike their parents and grandparents, Baby Boomers as a group retire with plenty of vigor.
Their vision of “senior” years is a quality, active lifestyle, and they want a home that promotes it. This means a low-maintenance, right-sized, single-level home. For those who have spent most of their lives in a single-family home, a large percentage do not want to transition into an attached, multi-family home or apartment.
Visionary builders and entrepreneurs recognize the value of the 55+ homebuyers market segment.
Interest in this industry segment continues to increase, as a market report released in April shows. Growth in this sector of the building industry increased from 16.1% in 1981 to 27.8% last year.
“While much has been made about young households entering the home buying market, the fastest growing share of homebuyers in the U.S. is actually among households over 55,” according to The Changing Face of the U.S. Homebuyer, released April 23 by Veritas Urbis Economics, an economics consulting firm.
One of the factors influencing 55+ homebuyers is that they’re ready to spend money on the home they want, not the one they have needed for their family, says Ed Bacome, founder of Epcon Communities. Ed and his partner, CEO Phil Fankhauser, were way ahead of the curve. Having anticipated this trend when they started building 55+ communities in 1986. Since then, they’ve also franchised the business model--and along with their Franchise Builders--have developed over 375 communities in 28 states.
“These homebuyers want single-level living, with an updated kitchen and master bath, and with many outdoor chores taken care of by the community - a comfortable space for their use, but large enough to accommodate gatherings of family friends,” says Bacome.
Sales of homes to 55+ buyers is now at the highest level since the National Association of Home Builders (NAHB) began tracking it six years ago. NAHB Chief Economist David Crowe explains:
“The consistent rise in home equity has contributed to the strong gains in the 55-plus housing market. Many consumers who had been sidelined due to the inability to sell their current homes at an acceptable price are now in a position where they can sell their homes, enabling them to rent or buy in a 55-plus community.”
To learn more about opportunities in 55+ housing, download this ebook:
“Why Real Estate Investors Can Find New Opportunities in 55+
Headquartered in Dublin, Ohio, Epcon is one of the top lifestyle-rich home developers in the country. For more than 30 years, Epcon has integrated smart, innovative designs with the most desirable modern amenities. Today, more than 30,000 families and individuals call an Epcon community "home."
By leveraging the company's proven designs, technology and marketing and sales resources, Epcon Franchise Builders are given a competitive advantage to quickly develop 55+ communities and become a market leader.