Baby Boomers Looking to DownsizeBy Integrity Windows
Although millenials are currently leading the multifamily housing, baby boomers looking to downsize are expected to drive apartment growth in the forthcoming years, according to a study by the Kansas City Federal Reserve, and as reported by Realtor Mag. In fact, the downsizing to apartments is an ever-increasing trend with older Americans.
Realtor Mag also states that downsizing activity generally occurs around the age of 70 and is becoming increasingly prominent by age 75. Looking at Census Bureau numbers, Americans aged 70 and older will increase by more than 20 million in the next 15 years – which, if downsizing remains a trend, will undoubtedly lead to a need for additional multi-family housing.
In a report from Kansas City Fed senior economist, Jordan Rappaport, he states that builders will need to adapt to the changing trends because while millenials are fine living in compact city spaces, older buyers tend to want more space and amenities – even when downsizing.