Dive Brief:
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Economists and housing analysts in a Bloomberg News poll predicted that single-family home sales will jump by 16% next year, and the National Association of Realtors said most of that demand will come from Baby Boomers.
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As millennials put off marriage and postpone the purchase of their first homes, builders are shifting their focus away from more affordable, entry-level abodes to bolster their stock of higher-end homes that appeal to potential buyers who are older and can afford larger, more luxurious dwellings, NAR said last week in Realtor magazine.
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Almost one-third of buyers are older than 50, NAR said, and the average price of the homes they’re buying is $210,000. The median price of a new home is $305,000—the highest in history.
Dive Insight:
Look for a surge in construction of homes suited for retirees in these 10 states: Albuquerque, Boise, Denver, Fort Myers, Greenville, SC, Orlando, Phoenix, Raleigh, Sarasota, and Tucson.
NAR identified them as magnets for Boomer buyers because of their solid job growth, high share of self-employed workers and affordable home prices.