Buyers in the 55+ or Baby Boomer demographic are more likely to pay cash for their homes or to make larger down payments than younger households, according to Paul Emrath, senior researcher at the National Association of Home Builders.
“Almost half of [55+ homes] are owned free and clear after a year,” said Emrath. “This is a segment of the market that’s paying cash.”
At the same time, one of the biggest challenges in building for baby boomers is building a house within their desired price range. Georgia builder Jim Chapman is “constantly” asked for housing stock under $250,000 when his average home price is $400,000, while Emrath says one-third of 55+ buyers are looking for a home under $150,000.