Baby-boomers are about to retire. All of us, including the baby boomers themselves, have realized this by now. For the most part, we hear this in the doom-and-gloom context of social security’s decline, but it might also have some positive effects on real-estate.
For example, the New York Times recently reported that the single-story house, or ranch house, is experiencing a comeback. Rates and prices are at an all-time low, but baby boomers are looking to the future – and they want the future to come without stairs.
The article, which focused mostly on single-story houses in New York state, points out that many boomers are years away from retirement or even empty-nesting. Still, they’re taking advantage of low prices and buying now with the next twenty years or so in mind. For many, this means a single-level home that’s easy on the upkeep. They’re looking out for their own safety, and perhaps the safety of future grandchildren – and they’re also looking to maximize convenience so as to stay in their homes as long as possible.
Why is this necessarily a good thing for the real estate market? Quite simply, single-story houses cost more to build because foundations and roofing are two of the biggest expenses in building a house. Many soon-to-be-retirees are perfectly willing to shoulder the extra cost if it can help them maintain their independence. In places like Sun City near Phoenix, which harbors a large number of retired people due to warm weather and low cost of living, there is a wide selection of single-story homes from which to choose. In regions like New York State, where the colonial has long been the norm, this housing trend could mean more work for builders in the next few years.
Who is Movoto Real Estate, you might ask? Movoto is an online real estate brokerage based in San Mateo, CA. Our blog has been recognized for its unique approach to city-based research by major news organizations around the world such as Forbes and CBS News.