Financial concerns are paramount for homebuyers 55 years old and older, replacing design considerations, a study from the National Association of Home Builders and the MetLife Mature Market Institute found.
Previous studies had found that these buyers had depended on the sale of their old home to finance a new purchase. But because of the economic downturn, for many that option is no longer viable.
Only 55% of older homebuyers said their down payment came from the sale of their previous home; in 2005, 100% of respondents said their down payment came from this source, while two years later it was 92%.
This study was based on data from the Census Bureau's 2009 American Housing Survey.
Among the findings was that the use of all types of reverse mortgages increased 54% between 2007 and 2009, to more than 241,000 households. Those who get a reverse mortgage tend to be older, single-person households with lower household income and longer housing tenure.
David Crowe, NAHB chief economist, said 54,000 housing starts are expected for communities for people 55 and over, up 30% from 2010, but still a relatively modest amount. In 2012, 79,000 starts in those communities are expected.
He noted that by 2020, 45% of all U.S. households would have one person at least 55 years old.
The desire to be near family and friends is the overwhelming reason why people in this age group move, the survey found. Design, amenities and appearance of the residents as well as the particular community remain important, but not as much as it did before the recession.
Of those who move into rental housing, while the desire to be near family and friends is at the top of the list as well, this group cited a desire for less expensive housing.
In a sign of the times, proximity to work was cited by 12% of those relocating to age-qualified active adult communities, up from 2% in 2001.
