November 24, 2014 (Newswire.com) - The Twin Cities real estate market is in the top 10 cities nationally that will be seeing more seniors generating more demand for single-family homes - and that isn't ready. To meet the needs of this burgeoning generation, more homes are needed that are ideal for senior adults to age in place. The Twin Cities housing market is listed 10th national as the most likely suffer from the large housing gaps for 55-plus consumers, according to a combined research effort by Epcon Franchising and Metrostudy.
"Minneapolis real estate demographics show that close to half of all senior-headed households, that are residents of the Twin Cities, are living alone. Future living scenarios of these seniors living alone, and senior couples, are likely to require a move into attached housing, apartment dwellings, or age-restricted housing options," says Jenna Thuening, owner of Home Destination. "This will mean that a larger number of single-family detached houses will go on the market for sale and thereby augment the need for increased supply of new Twin Cities single-family homes ideal for seniors."
Meeting the needs of aging populations is both a struggle and a potential source for economic growth, according to the Minnesota Aging Services Institute. In terms of housing market shifts due to changes in local population demographics, a Harvard study found that in the previous 10 years, nearly one-third of older households did move, most often to smaller homes. Assuming this percentage continues as the populations explodes, a growing number of seniors will be changing homes in the growing decade. Fluxuations between supply and demand bare a tremendous impact on the market. It's much about economics for many retiring seniors who live on a set income; however, the Twin Cities seems to have a high percentage of retiring seniors that can afford their housing costs and who live quite comfortably.
Senior citizens in the U.S are living longer and local markets have more to do to prepare for them, according to a recent report by the Harvard Joint Center for Housing Studies and AARP Foundation. Minneapolis in one of cities indicated who need to ramp up effort to meet the surge in demand by seniors for Twin Cities single family homes.
Relying on stats from the U.S. census, Harvard predicts the number of Minnesota residents 65 and older will increase by 150 percent, to 770,000 from 2010 to 2040. That age category will increase from 11 percent of the state's population to 21 percent. It may be the reason behind the surge in Twin Cities senior complexes that are being built.
For example, Wayzata's new luxury senior complex is taking a ton of requests from local senior residents in single-family homes who want to scale down. The apartments carry a pricy tag. The senior apartment rents are about 740 square feet to 2,300 square feet. Rents range from $1,665 to $5,150 per month, after a fully-refundable entrance deposit of $95,000 to $586,000. "About 70 percent of the residents in the complex have moved from a five mile-radius of the site, which is unusually high for a project this size," John Mehrkens, vice president of development for senior housing partners told Biz Journal. Some seniors argue that they would have preferred buying a suitable one-level single family home, but with low housing inventory they are challenged to find what they wanted.
"Being a region whose politicians have long supported homeowners, the many seniors who prefer to age in place are happy to continue calling Minneapolis home," comments Thuening. But clearly, there is more work to be done.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up or seniors seeking to downsize to a retirement home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.