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New Study Provides Insights on Senior Home Buyers

Looking at initial results of the study, Jack L. Haynes, executive vice president of the National Builder Division at Countrywide Home Loans, based in Plano, TX, said that it is “striking that many home buyers aged 50 or older are not simply cashing out the equity they built up in the home they raised their children in and downsizing into a less expensive house or apartment.”

Older home buyers are willing to pay extra for high-tech options and upgrades in their homes, according to the “2003 NAHB Builders Survey: An Industry Update of Building Trends of Age-Restricted, Age-Targeted and Independent Living Communities.” About 25% are paying as much for their new homes as their previous homes; and another 25% are spending more.

More than half of these buyers are financing their golden-year housing purchases with cash or with high downpayments of 30% or more, the study finds.

“Baby boomers continue to rewrite the rules of consumer behavior at every stage of life, and home builders and mortgage lenders need to be prepared to meet their changing demands,” Haynes said.

The study examines the amenities, features and services builders are planning and incorporating into communities for the elderly; where seniors are relocating; how much they are spending; how they are financing their purchases; their motivation for moving and regional trends.

Complete study results are being released during the 2003 Seniors Housing Symposium: Building for Boomers and Beyond this week at the Renaissance Esmeralda Resort & Spa in Indian Wells, CA.

AARP is releasing a related study on elderly consumers during the symposium.

For more information, e-mail Jeff Jenkins at NAHB or call him at 800-368-5242 x8292.

BuilderBooks.com offers a variety of seniors housing publications online. To view or purchase these publications, click here.

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