According to the U.S. Census Bureau and Analysis, the population of the United States will grow 11.55% over the next 15 years. While Millennials are changingtraditional working and living arrangements in the nation, the group to watch and to plan for is those over 65 years of age. The analysis shows that those over age 75 will be growing to represent 10% of the population and over age 65 will represent 20% by 2030. As the population of this age group builds to those levels in the coming years, the opportunity for commercial real estate growth to meet the needs of this age group builds as well.
Further statistics show that the current 55+ age group is in control of over 75% of the country’s wealth and on a global scale it is projected that the spending power of those over 60 will be $15 trillion by 2020.
These “Baby Boomers” are often self-sufficient, willing and able to live independently and often they have been retirement planning and saving for this stage of life for many years. Overall they want to enjoy their families and be nearby and accessible to their family, but not in the same house. They want to travel and explore without worrying about maintaining landscaping or shoveling snow.
While the need for skilled care facilities will grow, there is an equal need for those who are independent or semi-independent and want to have a place of their own to come and go, travel and visit with friends and family as they please. Independent living communities are growing in popularity and size and will continue to do so. Medical facilities will be changed to accommodate this age group as they will need access to health care and preventative medicine, They will prefer to get things done quickly and efficiently and then move on with their day.
To this end, commercial real estate planning for this fastest growing population is well under way and can take many forms.
The projections mean that the population will be older than ever before in history and the opportunity for growth in this area is great. Commercial real estate owners/developers can begin preparing and making changes now to consider how best to accommodate and anticipate the specific needs and desires of this segment of the community and be ready to meet the demand.