The 55 and over crowd is on the house-hunt and with projections of 52 percent of new-home buyers falling in this age group over the next five years, according to a study by Epcon Franchising and Metrostudy, now is the time to get single story, townhomes and other senior-friendly housing options ready for this big buying market. The study estimates that the supply squeeze will affect about 260,000 boomers in the top metro markets. Luckily for all your keen house flippers out there, at the current rate of the aging baby boomer population, several cities will be unable to meet the demand, which will likely keep boomers from moving to the location or type of home they want. With so many potential buyers ready to roll, it might be time to rethink your fix/flip house investment strategy and start hunting for projects that would meet the needs of this selective and well-financed audience. A lot of new opportunities could be in your future.
The top things this generation of house-hunter is looking for are: easily accessible floor plans – like patio homes where at least the master bedroom, full bath, kitchen and living area are all on the main level. They are also looking for quiet, privacy and some outdoor space to relax but without a lot of exterior maintenance- townhomes that include yard maintenance are particularly interesting to this group. They also want amenities including a pool, gym, tennis court, clubhouse, walking trails, etc. to keep up an active lifestyle. The other good thing about fix/flipping for this market is that the homes do not need to be in good school districts or near bus stops, pediatrician’s offices or libraries. Things younger families are looking for are just not making the list for this baby boomer generation – this should open up other areas to house hunt in that are currently not froth with competition from families with school-aged kids.
The following markets will likely suffer from the largest housing gaps for 55-plus consumers, according to the Epcon Franchising and Metrostudy study:
1. Dallas-Fort Worth, Texas
3. District of Columbia
9. Austin, Texas
10. Minneapolis-St.Paul, Minn.
Source: “Top Cities for Unmet Boomer Housing Demand,” BUILDER Online (Oct. 24, 2014)
So rethink your 2015 house hunting strategy and consider buying up some 55+ friendly fix/flip opportunities – the market should be heating up! For financing options and questions to get going on this exciting real estate investment strategy, contact the experts on hard money and private money lending here at Center Street at 949-244-1090.