February 4, 2010

Boomers will shape housing market over next decade

Housing trends are changing, and are being led by the boomers. A report by the Urban Land Institute found that over the next 10 years, fewer boomers will move to new homes. Those that do will move closer to their children, rather than Sun Belt states.

Because older boomers are healthier and more energetic than their parents, they'll put off moving into traditional retirement centers in favor of mixed-age, mixed-use urban communities, and urbanized suburban town centers, according to the report.

Younger boomers are facing a larger challenge. Suppressed home prices and a smaller pool of buyers will make it difficult for them to move at all. The second home market will be weak, as well, and only those markets that appeal to the wealthiest will remain strong.

As for where we'll see the most demand, the report points to the Harvard Joint Center, which projects that married couples without children, including empty nesters will be the fastest-growing segment, followed by single person households.

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