There’s a gaping hole in the multi-family housing market for medium-income baby boomers who are “reluctant” to downsize from their single-family homes, according to development consultant David Allison, author of The Stackable Boomer.
In a speech at an Urban Development Institute breakfast seminar February 3 at the Pan Pacific Hotel in downtown Vancouver, Allison told the development industry delegates that, as demand from this massive demographic grows, more mid-level stock will be needed, and it has to cater for the specific needs of boomers.
“There will be a huge demand for multi-family from middle-class boomers: the ones who aren’t all that happy about having to sell the house in the suburbs in the first place. But we aren’t building very much for them right now.
“You see, as an industry we’re already successfully building and selling homes to the wealthy boomers who want a concierge and a wine-cellar and a built-in espresso machine in every room. But what about the boomers who can’t afford all that? They don’t want to live in buildings designed for first-time homebuyers: they are scared of trying to sleep just down the hall from a part-time DJ who likes to have keg parties on the weekend.
“There is a lack of choice in the market for the boomers who can’t afford the high-end product, and aren’t enthused about the entry-level product either.”
Allison explained to the sold-out audience that his research for The Stackable Boomer involved surveying 1,000 North American baby-boomers who have moved from a detached home and have been living in multi-family units for at least five years.
He asserted that social acceptance was a major factor in baby-boomers’ buying decision, and that it was important for them to feel that they are still part of the same social group as their peers who may still live in large single-family homes, as well as feeling like they are a part of the community in their new home.
Allison added that luxuries such as spa-like bathrooms were very low on the priority list of his 1,000 survey respondents, and that living rooms, dining rooms and kitchens were far more important to almost all of the boomers surveyed. He described these three rooms as “the show-off” triangle, as it is where boomers entertain friends and family, and suggested that development costs be concentrated in this area, creating better value for the buyer.
Allison also raised the importance of creating accessible, single-level homes to accommodate boomers’ needs as they age – even though the boomers don’t want to be reminded of this, he said, causing a laugh among the listening audience.
“One of the interesting things we found out is that boomers want to know that hallways are wide enough to accommodate a wheelchair, or a walker, or that grab rails can be added to the bathroom, for example – but they don’t want to be told that. They don’t want that to be in the sales material. So we have to find secret ways to tell buyers this stuff.”
