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ACTIVE ADULT HOMES: A SMART INVESTMENT IN 2017

ACTIVE ADULT HOMES: A SMART INVESTMENT IN 2017

For most people, owning a home is the true American dream, because it means having a place that belongs exclusively to them, and in a stable community.

Turns out, home ownership is also a very smart financial decision. The mortgage and taxes on homes are subsidized by the tax code, and the value of your house should stay on an upward trajectory over the long term.

Overall, it seems like a far smarter decision to buy than rent. And that’s not only true for first-time home buyers who plan to live in that house for decades as they raise their kids – It’s also become true for Americans who are 55 and older, aiming to downsize.

There are now more than 75 million Baby Boomers in the United States, representing a quarter of the population. Millions of these Boomers are considering the benefits of living in an Active Adult community. Housing trends indicate that demand for housing specifically geared to this demographic will be going up in the next decade.

The National Investment Center for Seniors Housing & Care conducted studies that show this segment is outpacing the rest of the housing market. With home values rising, NIC reported that between 2005 and 2015, investors achieved a solid 14 percent return on active adult housing, compared to an 8 percent return on apartments and rental units. Why is this happening?

One factor is that Baby Boomers want to retire in a warmer climate, which has been a boon for Florida. These house hunters want to be able to enjoy the outdoors year-round.

An Active Adult community is the perfect solution; where homes are located in an area that permits outdoor activities like swimming, tennis, golf, and walking trails. Many Active Adult developments, like Solivita, provide other relaxing recreational activities like painting classes.

These properties also offer a smart investment for owners, as their home value increase, due to rising demand for houses in Active Adult communities. A study by Bright Future Real Estate Research noted that the Active Adult market experienced a healthier-than-expected year in 2016, and builders expect that high demand to continue this year. That’s particularly true in Florida, where Active Adult communities like AV Homes’ Solivita are experiencing great success.

Demographic trends suggest that the outlook for Active Adult communities will be bright for a while. As long as the Sunshine State remains a top choice for settling down, Active Adult communities will be in high demand.