It’s no secret that the American population is “aging,” and that this trend could have an effect on homebuilders and the real estate market. Currently, 18.5 percent of the U.S. population is older than 60, and this number is expected to increase to 25 percent by 2050.
According to the U.S. Census Bureau, Chicago ranked as number 31 on the “fastest aging” metros list, but being an aging metro isn’t necessarily bad news for the local real estate market. Other aging cities, such as Pittsburgh and Boston, have actually fared quite well during the recession. Older homeowners have been less affected by the housing bubble than younger ones, and they are also less likely to default on their mortgages.
Many economists are optimistic that cities will be able to offset the effects caused by an aging population by attracting more young professionals. Data released from a 2010 U.S. Census Report showed that in the past 10 years, Chicago experienced the largest increase in its downtown population when compared with any other U.S. city.
Confidence in both the 55+ housing market and downtown condo market is increasing, proving that builders and investors are working to accommodate both sides of the changing population. The current Multifamily Production Index remains at a steady 52, and builder confidence in the 55+ housing market also increased in the third quarter of 2012.
Interested in moving to a 55+ community in the Chicago area? Ryland Homes is now selling resort style living for 55+ active adults at their Andare community at Talamore and Cambridge Homes is now selling 55+ homes at their community in Plainfield.