Baby Boomers Effect on Senior Housing Development
There has been much publicity regarding the growing baby boomer demographic. In the U.S., baby boomers account for 76 million about 28% of the total population. By 2020, boomers will be ages 56 to 74. Many developers see this demographic as the next huge wave for senior housing construction, believing that this age group will rapidly shift over to senior housing because it is there.
The relocation to senior housing for baby boomers is likely not to occur in any significant form until later than 2020, more likely closer to 2030 when a larger share of baby boomers will be age 75 or older.
Nationally, only about 10% to 15% of the senior population lives in senior housing, less for seniors under age 70 and slightly higher for seniors over age 75. The movement to senior housing for older seniors has been primarily a desire to remain out of the nursing home and to receive care in a more residential setting.
Baby boomers have historically been the “go-go” generation, highly mobile and living longer than their parents. They have also been the group that has become accustomed to larger home sizes and luxury surroundings, more so than their parents.
Tomorrow’s seniors (i.e. baby boomers) may have very different ideas of what their next residential move will be. Today’s economy is likely to require that seniors continue to work longer than did their parents, which may require them to support two vehicles further into the future. Working for longer periods of time will keep them more active.
While a portion of baby boomers will search for convenience products such as condominiums and townhomes to reduce the burden of home maintenance, it is unlikely that this group will see themselves as candidates for today’s traditional senior housing products any time soon.
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