Housing Market Looking Favorable for Baby Boomers
More and more Baby Boomers are looking to invest in a new home as they retire, leading the 55+ housing market to a thriving state. Many older adults who are looking for new builds have convinced home builders that the housing market for this generation is soaring to higher records.
The National Association of Home Builders (NAHB) reports that in the first quarter of 2019, builder confidence in the Baby Boomer housing market has reached 76, six whole points higher than the previous quarter and the highest it has been in over a decade.
The market is strong, but it’s not without its challenges. The chair of the National Association of Home Builders, Karen Schoeder, argues, “Demand for homes in 55+ communities remain strong as more buyers and renters in that market search for simpler living arrangements. However, there are still headwinds that are impacting the market.”
Some of these concerns could be the increasing costs of construction and lack of adequately trained labor. These have become a severe problem for home builders, which ultimately factors in the rising cost for buyers. The key to this market’s potential, then, is the necessity to build affordable homes.
One often unknown financing option designed for buyers in this demographic might be the answer to financing a home. It’s known as reverse for purchase. This option gives any individual over the age of 62 to receive a reverse mortgage. With this option, they can buy a home without needing to make monthly payments. This is an excellent option for those on a fixed and limited income but might require a steep down payment. However, depending on the home, it can be as much as half the purchase price.
However they go about financing, the housing market is looking very healthy for the Baby Boomers, and the key to maintaining this demand is to inform of the ways to go about financing a new home.