Listening for the Boomer Boom in Active Condo Housing
Orest Tomaselli
Lender Compliance | Condo | Co-op | Condopak | Co-opPak | Project Approval | Reserve Studies |
There’s a sliver of the housing market called “active adult housing.” If this term brings to mind Del Webb’s Arizona Sun City development, then the term works for you. Developers and investors are trying to work out what this segment of the population is planning next for housing. Are they downsizing? Are they hunkering down and remaining in place to conserve capital?
According to a report on the Nightly Business Report http://bit.ly/1xsnrFb a boomer housing boom can be heard. Some boomers want a change -- smaller digs but more things to do while living there.
NBR offers an upbeat quote from Richard Dugas, PulteGroup CEO:
Buyers feeling better about finances and also feeling better about their ability to sell given the rest of the housing market has improved. So, we’re very excited as we go into ‘15.
For some homeowners, the issue is more than just wanting to reduce their large family-size home upkeep and maintenance chores. They want to take advantage of the activities provided in the active community settings. That is offsetting risk, inconvenience and other obstacles to making a change.
This thinking likely extends to condo life as well.
The challenge for boomers seeking to join this boom – or boomlet – is credit. Getting a mortgage after retirement is difficult, which is why many such transactions are cash purchases. Developers are responding with flexibility: flexibility in amenities offered, phases of construction and targeted age groups.
What have you heard about boomers and active condo living?
Mentions: Pulte Group http://bit.ly/1zB0MFX (@PulteGroupNews), Nightly Business Report http://bit.ly/1v4hrwh (@bizrpt)
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Friendship Village, Kalamazoo (Credit: Doug Brown) The headline image is of Sarasota Florida (Roger Wollstadt).
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8yFor Boomers having difficulty obtaining a mortgage post retirement, if they are 62 and over, there is the option of purchasing with a Reverse Mortgage. This option gives them tremendous flexibility. Income and credit considerations are minimal. They do not have to purchase with all cash. If they want to make monthly mortgage payments so their debt does not continue to accrue, they can but they don't have to.