There comes a time in life when you are ready to move on from your family home and find a more appropriate, interesting, or affordable place to call home. For many, the journey begins with researching active “adult communities,” weighing the decision to buy a condo or new house, or even building the home of their dreams in the place they plan retire.
What makes the near and recently-retired community so different from other buyers on the market for homes is the time that the majority of seniors intend to put in the house they buy.
The Millennials are driving the market at the moment, buying up houses in an effort to find that perfect first home. But a first home is just that—the first home that they will purchase to start their lives and build their families.
The average Millennial is now likely to stay in their first home for longer than previous generations, circumventing the old standard of “starter home” and moving into homes that will suit their needs until their new family begins to outgrow it. Today, most Millennial buyers intend to spend around ten years in their first home, twice as long as they would in a starter home.
This Millennial expectation of a ten-year timeline exists whether they purchase a small home or condominium, and even if they build their first home from the ground up.
On the other end of the spectrum, those close to retirement or recently retired who (aged between 61 and 69) anticipate spending the longest amount of time in their homes. The average 61 to 69-year old expects to stay in their newly purchased home for twenty years or more.
That statistic means that those close to retirement are investing in their future, and that has a lot of implications for the decision to build or buy their homes.
Newer built homes and older homes are generally built to accommodate larger families, and that much spaces can be overwhelming and unnecessary when you are at a time in your life when downgrading is preferable. There is also a lot of heavy competition for newly built homes right now, and they are unlikely to reflect the needs of those of retirement age.
There are many advantages to building your home when you are in ready to spend twenty or more years in it.
Those aged 61-69 generally have more time to invest in a newly built home, especially when compared to younger buyers who spend the majority of their time working and raising small children. The luxury of waiting for a new home to be built is one that very few Millennials or those aged between 30 and 60 simply cannot afford.
Not only do retirees have the time to spend building their home, they also have the unique perspective of having spent decades in other homes and deciding which features and architectural styles they want for their new home, instead of just accepting what older and pre-built homes have to offer.
For many, the choice to swap a bedroom for a custom built home office, a cumbersome pool for a custom-built patio and garden, or family room for a library is something that younger buyers simply cannot afford to invest in and are unlikely to be found in older homes.
If you are anything like the average 61 to 69-year old, you will probably be spending the next two decades in whichever home you choose. It is vital that you choose a home that is comfortable and suits your needs, it is important to weigh your expectations against how long you intend to remain in your home.