The Silver Tsunami

A great post today from John Downey on the Keeping Current Matters blog points us to the fact that 10,000 people turn 65 each day in the United States.  The implications for the real estate market are profound – It is my opinion that there is not nearly enough standing inventory designed to meet the specific demands of an aging population.  To be precise, single level dwellings with footprints that focus on space efficiency are hard to find in a world where developers are focused on maximizing livable square footage.  Builders tend to maximize their return on lot investment (a noble objective, to be sure) by adding second, and sometimes third, floors to their product.  The whipsaw effect of too strict an adherence to that model, however, is that the product becomes obsolete as knees, ankles and balance wear down with age.  Thankfully, population growth should allow for second and third generation homeowners to move up into these properties, but it is disturbing to think that our elders will have very little choice as they contemplate where to go.

My message to the investor clients with whom I work is very consistent.  Grab yourself a ranch-style home built with good bones in an established neighborhood.  Doesn't have to be flashy, and it doesn't have to be new – Rent it out and bide your time until the Silver Tsunami of demand brings the market to you…

Posted on June 5, 2013 at 9:08 pm
Matt Crile | Category: Uncategorized

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