Regardless of your real estate investment strategy, it’s a good idea to keep demographical trends, in particular homeowners' ages, in mind.
While Florida is still the top locale for the oldest U.S. homeowners, a new state is attracting the nation’s youngest homeowners, according to a recent study by Lending Tree.
Using data from the U.S. Census Bureau on the 100 largest metro areas in the United States, Lending Tree found that homeowners in large cities in Utah are among the youngest in the country.
Out of the top 10 metros with the lowest average age for homeowners, three areas in Utah — Provo, Ogden and Salt Lake City — were in the top spot, according to the study. In fact, only two metros in Lending Tree’s analysis — Provo and Ogden, Utah — have an average homeowner age below 50. Provo homeowners are the youngest in the country with an average age of 47, while the national average is 54 years old.
In contrast, Florida homeowners are older than homeowners in most other states, according to the report. Seven out of the top 10 metro areas with the highest average homeowner age were in Florida, with North Port, Florida, hosting the oldest homeowners with an average age of 63.
Regardless of your real estate investment strategy, it’s a good idea to keep these trends in mind. Depending on your target market and or your location, your strategy could be enhanced with a better idea of an area’s demographics.
As we’ve previously reported, senior citizens’ housing preferences continue to determine the nature of the future housing market, according to a 2018 State of the Nation’s Housing report from the Harvard Joint Center for Housing Studies.
Historically, younger homebuyers’ housing preferences would play an increasingly substantial role in shaping the housing market as older homeowners aged into alternative living situations. Thanks to seniors’ preferences for remaining in their current home as they age, however, national homeownership trends are still heavily influenced by older generations.
88 percent of seniors said they would stay in their home as long as they could, according to a 2014 survey. According to the more recent report, “households headed by persons aged 65 and over will continue to grow at an unprecedented pace in the next decade, increasing the presence of holder households in both the homeowner and rental markets.”
Here’s a bit more from the Lending Tree report.