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Home Builder's are finding every reason to be confident of an increase in the 55+ housing market for single-family homes, as baby boomers become seniors. Significant improvements in the latest 55+ Housing Market Index (HMI) from the third quarter of 2012 compared to the same period a year ago, are demanding attention, according to the National Association of Home Builders’ (NAHB).
Highest Index Reading Ever
The index showed a remarkable increase, having more than tripled year over year from a level of 12 to 36. As the highest third-quarter reading since the inception of the index in 2008, it serves as an acknowledgement of the growing U.S. senior population.:
As Minneapolis and St Paul residential housing communities experiences the aging of Baby Boomers, it is clear the senior populations is growing and diversifying at a pace that commands attention. Fewer seniors are disabled, fewer are financially dependent, and more are fully engaged in their pursuits of interests, hobbies, and community involvement as they choose to retire.
The index showed a remarkable increase, having more than tripled year over year from a level of 12 to 36. As the highest third-quarter reading since the inception of the index in 2008, it serves as an acknowledgement of the growing U.S. senior population.
Aging Is Posing A Unique Demand For Housing
Home Destination's owner, Jenna Thuening says, "The major factor changing the housing industry's demographics is the sheer volume of Baby Boomers and the rapidly increasing number of seniors facing housing affordability and independent living challenges. While many are affluent, aging is posing a unique demand for housing and special housing challenges for renters, minorities and rural Americans".
Minnesota Seniors Are Urged To "Own Your Future"
Minnesota's Lieutenant Governor Yvonne Prettner Solon and other state officials launched Minnesota’s “Own Your Future” initiative. Governor Mark Dayton and Lieutenant Governor Yvonne Prettner Solon are urging all Minnesotans age 40 to 65 to “Own Your Future” by planning for their personal need as they age. Filled with urges for seniors to plan - with their existing families - what affordable long-term care plan to Too many seniors falsely believe they can simply rely on Medicare.
“Like other segments of the housing industry, the market for 55+ housing is continuing on a steady upward path, driven by improving conditions in additional markets around some parts of the country” said NAHB Chief Economist David Crowe “While we expect the upward trend to continue as the recovery broadens, the speed of the recovery is being constrained by factors as tight mortgage credit, making it difficult for potential 55+ customers to sell their current homes, and shortages of inputs to construction such as buildable lots that are beginning to emerge in some market areas.”
Help For Single-Family Homes: Minnesota Urban and Rural Homesteading (State Funded) Program Income Limits
The Minnesota Urban and Rural Homesteading (State Funded) Program uses the Level 3 Minnesota Housing Income limits listed above. They are based on HUD median family income estimates and calculated at 60% of the greater of state or area median income.
Housing And Senior Living Opportunities In Minneapolis
Minneapolis senior care providers offer Various types of senior housing options for aging adults are offered by Minneapolis senior care providers. There are options from Minneapolis 55+ communities, to Alzheimer's care, Independent Living, Assisted Living, Skilled Nursing, Continuing Care, nursing homes services, as well as continuing care retirement communities in the Minneapolis and St Paul housing market. Check for senior housing opportunities at www.seniorhousing.net.
The NAHB reports on 55+ HMIs for three segments of the 55+ housing market:
55+ Single-Family Housing Overview
Although all components of the 55+ single-family HMI remain below 50, Every aspect of the 55+ single-family HMI report shows numbers have at least doubled from a year ago. Details in the report give the following overview:
present sales climbed 25 points to 36
expected sales for the next six months increased 27 points to 42
traffic of prospective buyers rose 20 points to 33.
Multifamily Condominiums - Housing for Seniors
The 55+ multifamily condo HMI had a significant increase of 13 points to 23, which is the highest third-quarter reading since the inception of the index in 2008; however, condos remain the weakest segment of the 55+ housing market. All 55+ multifamily HMI components increased considerably compared to a year ago as present sales rose 13 points to 22, expected sales for the next six months jumped 19 points to 29 and traffic of prospective buyers climbed 11 points to 22.
Rental Housing for Seniors
Meanwhile, the 55+ multifamily rental indices, which already recovered substantially last year, showed continued but more modest increases in the third quarter: present production climbed six points to 31, expected future production increased nine points to 35 and current demand for existing units and expected future demand improved two points to 42 and 44, respectively.
Seniors Face Housing Affordability Crisis
"Affordability is a serious problem for seniors, especially for renters. According to a U.S. Department of Housing and Urban Development (HUD) report to Congress earlier this year, 1.33 million elderly renters (where the householder or spouse is age 62 or over, with no children under 18 present) had “worst case” housing needs in 2009. This meant that they earned less than half their metropolitan area’s median income, received no government housing assistance and either paid more than half their income for rent, lived in severely inadequate housing, or both, according to the Bipartisan Policy Center.
Seniors Face Housing Affordability Crisis
Pursuant to Minnesota Statutes 144A.33, the Minnesota Board on Aging (MBA) receives a $5 surcharge on each licensed nursing home and boarding care home bed. These funds must be granted to a statewide, independent, nonprofit, consumer-sponsored agency to educate and inform resident and family councils about:
• care in the nursing home or board and care home
• resident rights and responsibilities
• resident and family council organizations and maintenance
• laws and rules that apply to homes and residents
• human relations
• resident and family self-help methods to increase quality of care and quality of life in a nursing home or board and care home.