55+ Buyers Help Active Adult Communities Grow to 11.4% of New Home Sales

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The Chicago Tribune is reporting that despite a tough real estate market, local active adult communities for those 55 and older are having some success. According to the Tribune, local builders are reporting that sales at active-adult communities never declined as much as they did at family-oriented or move-up developments. And recently, active-adult sales have been on the upswing.

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During the downturn, sales at active-adult communities never declined as much as they did at family-oriented or move-up developments, local builders report. And recently, active-adult sales have been on the upswing.

In fact, home sales at active-adult communities make up a growing percentage of the area’s new-home sales. Active-adult sales grew to 11.4 percent of the new-home sales market in 2009, compared with 7.4 percent in 2005, according to Tracy Cross & Associates, a Schaumburg-based market research firm.

The Sales at active-adult communities will eventually top out at about 13 percent of the total market, predicts company President Tracy Cross. Though some developers say they have plans for new developments when the market recovers, the big active-adult projects now selling homes are nearing completion. Sales are almost finished at Sun City Huntley, with 5,500 homes.

Housing’s bright spot: 55 and older

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  • While this may not be the trend everywhere, we are also seeing this trend. We are hoping to see even more new opportunities in the next 24 months.

    I just hope the Administration will support HUD in getting the HECM appropriation and change to the MIP required to avoid a 31% reduction to the principal limits on 10/1/2010; we also need the lending limit to stay at or increase above $625,500 on 1/1/2011. Otherwise, all of the positive economic senior housing news could be for naught.

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