Study: Many Older Homebuyers 'Buying Up'

One-fourth of homebuyers aged 50 and older are paying more for their latest home than for their previous one, and the new home likely features amenities like structured wiring and exterior maintenance services, according to a study by the National Association of Home Builders and Countrywide Home Loans.The study, to be released at the NAHB's forthcoming Seniors Housing Symposium, was designed to determine what baby boomers and older homebuyers want. "Probably the most striking aspect of the initial results of this study is that many homebuyers aged 50+ are not simply cashing out the equity they built up in the home they raised their children in and downsizing into a less expensive house or apartment," said Jack L. Haynes, executive vice president of Countrywide's National Builder Division in Plano, Texas. "Baby boomers continue to rewrite the rules of consumer behavior at every stage of life, and homebuilders and mortgage lenders need to be prepared to meet their changing demands." The study of builders and developers found that more than half of their buyers in age-qualified, age-targeted, and independent-living communities are spending the same or more on homes. The NAHB can be found online at http://www.nahb.com, and Countrywide can be found at http://www.countrywide.com.