Renting: The Millennial Trend That Has the Housing Market Booming
With its warm climate, Florida is appealing for our aging population, especially the elderly. In fact, Florida is the national leader in drawing senior citizens from other states as permanent residents. According to a recent survey, baby boomers who are mostly now in their 50s and 60s, and older seniors are fueling rapid growth in the south Florida real estate market and have the financial resources to do so.
Buy Versus Rent?
Although there is a trend to rent as some seniors do not wish to be anchored to an area-specific health care system, area developers continue to build communities designed for baby boomers over the age of 55 who still wish to own their own homes. The real estate is marketed to those who may be semi-retired and work from home. Though renting is known to be popular amongst millennials between the ages of 23 and 38, rental communities among those in their latter 70s have become increasingly popular in South Florida due to the need to be able to subsequently relocate in order to be closer to their families or manage their health issues. Belmont Village Senior Living, for instance, has recently broke ground on a rental project in Fort Lauderdale which incorporates independent, assisted, and memory care housing for those who no longer find homeownership appealing.
An Ever-Changing Economy
Florida is home to some of the wealthiest retirees in the nation, bringing in a net influx of more than $17 billion in adjusted gross income; a large chunk of that, about 72%, is represented by individuals of at least 55 years old who contribute with non-wage income. In the past, Florida’s expanding elderly population has been one of the most influential assets to our economy, making generous contributions to the medical industry and the retirement industry. Now, Florida may see a new growth in the housing industry due to the ongoing demand for communities that provide accommodations for senior citizens, whether they desire to rent or buy.
Senior living communities are now seeking to expand their horizons in sunny Florida based on the growth of the senior market. South Floridians may expect to see a significant increase in assisted living facilities which could promote a wave of economic growth initiated by the impact of the elder community. Whether or not they are renting, the senior population is sure to have an incredibly significant impact on the Florida housing market.
From the Trenches,