Age Group Preferences in Housing Markets

Active Adults, homeowners 55 and older, control trillions in housing wealth and now represent the largest share of buyers and sellers in the housing market. Yet too many loan officers overlook this segment, focusing only on early-journey first-time buyers. That’s a missed opportunity. As Jesse Q. Allen, President of Reverse Mortgage Finance at Rate, shared on my podcast, reverse mortgages, especially reverse for purchase, create powerful optionality for clients. Imagine a homeowner selling their $500,000 property and buying a $700,000 ranch closer to family. With a reverse for purchase, they could put 60% down and live without a monthly P&I payment for life (taxes and insurance still required). The opportunity for loan officers is bigger than any single product. By adding strategies to serve Active Adults, you position yourself as a true homeownership advisor, from the point of thought with a first-time buyer through the full life cycle of homeownership. You also expand your referral network: family members, financial planners, CPAs, and Realtors all have a stake in these transactions. Practical tactics include: Segmenting your database for clients 55+ Hosting community seminars on rightsizing and aging in place Partnering with Realtors to “unstick” sellers Using simple scenarios to explain options in plain language Serving Active Adults isn’t just about adding volume. It’s about building trust, unlocking inventory, and extending your career impact. Take the 10 minute to read the full article and check out the podcast episode.

The Evolving Face of the US Homebuyer The National Association of Realtors' (NAR) 2024 report provides a fascinating snapshot of the US housing market’s buyer profile that looks significantly different than it did just a few years ago. The data reveals a changing homebuyer. The average buyer age has climbed to a record 56, underscoring the impact of high housing costs and rising interest rates that have sidelined younger would-be buyers. For first-time buyers, the average age is now 38, nearly a decade older than it was in the early 1980s. These changes signal a more mature buyer who brings accumulated wealth and likely more significant financial security to the table. Additionally, a fifth of all home purchases were made by single women, a notable demographic shift reflecting both a societal change in homeownership goals and an economic shift in who can afford to buy. By contrast, single men comprised only 8% of recent buyers. This snapshot highlights what many are calling a “bifurcated housing market,” where those able to buy homes are increasingly established, wealthier individuals, often using home equity from previous properties to secure cash purchases or make substantial down payments. This market has been largely inaccessible to younger buyers, who continue to face affordability challenges, limited savings, and reduced opportunities for financial support in the form of lower mortgage rates. With affordability gauges near record lows, first-time homebuyers hold a mere 24% share of the market, down dramatically from the 40% share held in pre-Great Recession years. Rising prices and interest rates have compounded these barriers, leading to a market where nearly three-quarters of all buyers have no children under 18 at home, reflecting an older and more established buyer profile than in decades past. While this report offers a look back, the trends it captures underscore a potential turning point. Recent mortgage application data suggests that prospective buyers who had previously been priced out or sidelined may begin to re-enter the market as interest rates stabilize. If these sidelined buyers do return, particularly younger and more diverse demographics, the profile of the typical buyer could again start to shift, gradually increasing diversity in age, household composition, and race among homebuyers. At Havas Edge, we’re continually analyzing these demographic shifts to support brands in delivering timely, targeted strategies that meet the realities of today’s buyers and the anticipated resurgence of those who’ve been waiting on the sidelines. #RealEstate #Homebuyers #MarketTrends #HousingEconomics #ConsumerInsights

If you’re trying to understand what Boomers and older Gen Xers really want in senior housing, Adrienne Matei’s recent piece on cohousing in The Guardian is not a bad place to start. I would quibble with one assumption the piece (https://lnkd.in/gRjQ5u6k) makes: That there are essentially two options in today’s senior housing world: living alone and becoming lonely or moving into an institutional setting. There’s already far more available than these two unattractive extremes. But cohousing — multigenerational or senior-specific communities where people live, interact with and care for their neighbors — has real potential to grow. The Guardian piece provides four good reasons why: 👉 Older adults value their independence and agency. One subject of Matei’s piece says she chose co-housing in part because “institutions ‘take away the ability to decide what your day is going to look like,’ offering scheduled activities and mealtimes that reduce individual agency.” In cohousing, residents set their own schedules. And they do most things for themselves. It avoids instilling what I call the “learned helplessness” that grows in some other settings. And as retired gerontologist Anne P. Glass says in the piece, “Contrary to what society may believe, older people are really quite competent.” 👉 Older adults want community. This piece makes it clear that older adults long for community and a sense of connection. Angela Maddamma, 72, talked about the visits she received from new neighbors the day she moved into her cohousing community. She’s on a community committee and enjoys spontaneous connections with neighbors — but she can go home and “veg out” whenever she desires, too. That’s a key aspect of community within cohousing: Having ample opportunity to connect with others, but on your own terms. 👉 A Trend From the 1960s Makes a Comeback. The idea of living with a group of like-minded people and collaborating to support each other might sound familiar. In the 1960s and ’70s, these living arrangements were called communes. Communes and cohousing are both centered around community, not care. These alternative arrangements are not for everyone, and they’re difficult to scale, but they still are attractive to a significant number of older adults. 👉 A Market Gap has Opened Up. Thanks to increased longevity, markedly different segments make up what we used to simply call “senior citizens.”  There are many adults in their 60s, 70s and 80s who are seeking a housing lifestyle option, and others in their 80s or 90s who have care-driven needs. It’s not surprising that the former group wants something different. Because of this growing segment, I hope and think you'll see cohousing grow. Will it ever house millions? I don't think so. But I expect to see all sorts of alternative lifestyle options develop for Boomers and Gen X. There’s certainly a desire for new options. 

By 2030, all Baby Boomers will be 65+, with 1 in 5 Americans at retirement age. Of the original 74.1 million Boomers, ~56.4 million will be over 65. This massive shift will reshape housing: Downsizing wave — Millions will sell large family homes, increasing suburban inventory and potentially easing affordability for younger buyers. Senior housing surge — Demand for 55+ communities, assisted living, and CCRCs will soar. Current trends suggest a shortfall of 350k–600k units, creating a major development opportunity. Aging in place — Many Boomers will stay put, driving demand for aging in place (single-story layouts, grab bars, smart tech) and ADUs for multigenerational living. Industry impacts Builders specializing in accessible homes and senior communities will thrive. Remodelers offering aging-in-place solutions will see strong growth. Real estate pros skilled in senior transitions will be in demand. Walkable, amenity-rich locations will command premiums. Challenges include labor shortages, zoning hurdles, and affordability gaps for middle-income seniors. The 80+ cohort will soon double, intensifying need for care-focused housing. The housing market of 2030 will favor adaptable, senior-ready solutions. Those who prepare now—developers, investors, and policymakers—will lead the next era. Are we ready for this demographics shift? What else do we need to do to prepare?

Unpacking Real-Estate Ownership by Generation — the numbers that break the myth Image below shows a seismic shift in who actually holds U.S. real estate: the Silent Generation’s share fell from roughly 65% in 1991 to ~9% in 2025 — and Baby Boomers now control an outsized slice of the market. Here are the five facts that matter — and what they mean: - Ownership is concentrated in older cohorts. Baby Boomers now own a huge share of real estate ( Boomers own ~41% of property ownership in 2025), which drives a lot of market dynamics — supply, pricing, and who has equity to deploy or pass on. - Overall homeownership rates are stable — but misleading. The national homeownership rate sits near historical norms (~65% in recent HVS releases), but that masks very different outcomes by age cohort: older generations hold far more of the asset base than younger cohorts. - Boomers still have most of the home equity. U.S. homeowners collectively hold tens of trillions in home equity (estimates over $30–$35T), concentrated heavily with older households - Purchase activity is not purely a youthful story. Recent NAR reporting shows boomers reasserting strength in the market as buyers and sellers — in practice this means older cohorts are both listing less frequently and still buying selectively, that dynamic keeps inventory tight where millennials want it most. - The consequence: structural opportunity for rental and alternative housing product. With older cohorts holding wealth and younger cohorts facing price and rate barriers, the path to housing for many is long-term renting, creative co-living, or receiving help via inheritances that are slow to materialize. What this actually means: - Rent is not a stopgap — it’s an asset class. Build product for life-long renters (workforce housing, stabilized B-class multifamily, etc). Expect durable demand and higher renewal economics from cohorts priced out of ownership. - Design for “in-between” life stages. ADUs, micro-units, and co-living frameworks win where affordability and flexibility are prized. - Underwrite with a generation lens. Stress-test rents, not sales comps. Model longer lease durations, and capex allocated to tenant experience rather than speculative value-add repositioning. The map from 1991 → 2025 isn’t nostalgia — it’s a playbook. Ownership is concentrated among older generations; equity sits with Boomers and the Silent Gen; younger cohorts face price and rate barriers. That demographic inertia creates real, predictable demand for rental-first housing models and services that bridge the messy gap between inherited equity and modern renter economics. #usaeconomy #realestate #realestateownerhip

Why Age Distribution Matters More Than Population Growth in Real Estate Not all population growth creates the same real estate demand. Age distribution often tells us far more about a market's future than population growth alone. The latest U.S. Census Bureau data shows that the South was the only U.S. region to grow across all major age groups between 2020 and 2025, with much of that growth occurring in outlying counties surrounding metropolitan areas rather than urban cores. For developers, investors, and homebuilders, each age group signals a different type of demand: 🏡 Ages 0–17: Greater need for family housing, schools, parks, childcare, and neighborhood retail. 🎓 Ages 18–24: Stronger demand for student housing and rental communities near universities and military installations. 👨👩👧 Ages 25–44: Higher demand for apartments, build-to-rent communities, starter homes, retail, and employment-oriented mixed-use development as household formation accelerates. 💼 Ages 45–64: Demand shifts toward move-up housing, lifestyle amenities, and communities serving peak earning households. 🌴 Ages 65+: Growing need for senior housing, healthcare facilities, and age-friendly residential communities. One of the most important findings is where this growth is happening. Rather than concentrating in urban cores, much of the South's expansion has occurred in outlying metro counties, reinforcing the continued importance of suburban and exurban markets. For commercial real estate, age distribution provides context that the overall population growth cannot. Two counties may add the same number of residents, but if one is attracting young families while the other is attracting retirees, the housing, retail, healthcare, education, and infrastructure needs will look very different. Population growth tells us how much a market is changing. Age distribution helps us understand what the market will need next. Sources: U.S. Census Bureau, Vintage 2025 Population Estimates (June 25, 2026); U.S. Census Bureau, Share of County Population by Select Age Groups (2025). #RealEstate #CommercialRealEstate #CRE #Housing #Development #Demographics #PopulationTrends #UrbanPlanning

This is the chart I look at most to determine the future of housing demand in America. Less: 1) family-oriented housing 2) traditional active adult (55+) housing 3) rental housing targeting young adults More: 1) senior living housing 2) single-story homes with universal design features, both for rent and for sale 3) universal design remodeling 4) housing near extended families, which, for many seniors, will involve relocating to where their adult kids live These will be massive pivots for today's homebuilders, apartment developers, and building material companies. And location matters: * In no/low growth areas, focus on providing a better home than the existing market, but don't count on much price appreciation unless the employment market is also growing. * In high-growth areas, be wary of competition. It is possible to overbuild in high-growth areas, as we are finding out in many areas of Texas right now.

You want to know where real estate demand is headed? Look at this chart: This data allows us to make a fairly safe assumption about where demand is headed over the next decade. Here's what you need to know: The oldest Americans are about to surge. Between 2025 and 2034, the U.S. will add: • 3.9 million people aged 75-79 • 4.2 million people aged 80-84 • 4.1 million people aged 85+ That's over 12 million new Americans in the age ranges that need assisted living and memory care. This isn't a maybe. This is happening. The oldest Boomers are aging into their late 70s and 80s. And that's exactly when people need senior housing. Active adult communities are in trouble. Here's the problem: Active adult communities target people in their 60s and early 70s. People who want to downsize but aren't ready for assisted care yet. But look at what's happening to those age groups: • Ages 55-59: down 0.8 million • Ages 60-64: down 2.1 million • Ages 65-69: down 0.8 million That's nearly 4 million fewer people in the prime active adult demographic. Why? Gen X is too small. They can't replace the Boomers who are aging out of this segment. So while active adult communities won't disappear, they're going to struggle. The customer base is literally shrinking. The children's market is also shrinking. It's not just active adults. Younger age groups are declining across the board: • Ages 0-4: down 0.3 million • Ages 5-9: down 1.5 million • Ages 10-14: down 1.7 million • Ages 15-19: down 1 million What does this mean? Fewer kids. Fewer teenagers. Less demand for schools, daycare centers, and family-sized starter homes in the suburbs. The family housing market won't crash. But it won't be the growth engine it once was. If you want to understand where real estate demand is headed, follow the demographics. The next decade will be defined by: 1/ Explosive growth in memory care and assisted living (75+) 2/ Shrinking demand for active adult communities (55-74) 3/ Declining youth and family markets There's one clear winner: senior housing for the oldest Americans. The chart tells you everything you need to know.