Manny Gonzalez – Baby Boomers in Today’s Housing Market
May 12, 2014
Manny Gonzalez, Principal of KTGY Group, Inc. will join a panel of industry experts at PCBC for an open dialogue about modern demographic trends and balancing the desires of Boomers with the realities of land and construction costs. Manny gave us some insight into some of the things we can expect from “The New Frontier of 50+ Housing” at PCBC.
>What are the biggest complaints developers are facing from Boomers looking to settle down? What seems to be lacking in today’s market?
The most common desire among 50+ buyers is a great floor plan; a plan that meets their needs today, and not one that met their needs as a family of 5 or what developers thought the 50+ buyer wanted even just 10 years ago. The 50+ buyer wants a plan that provides adequate space for their daily needs and the ability to entertain friends in style.
>Who do you think currently has a greater influence on today’s housing market, Boomers or Millennials? Will this change in the next 10-20 years?
That is a very interesting question, because I feel they are intertwined. The Boomers will undoubtedly be the greater influence, because they will be buying the more expensive homes, but they need the Millennials to form households and begin buying starter homes. This initiates the traditional cycle that produces the buyers of the Boomer homes, which allows Boomers to use their proceeds from the sale of their home to purchase a home that meets their needs as empty nesters.
>Without giving away too much, would you say Boomer’s expectations are compatible with current land and construction costs? Why?
Affordability is critical in almost every aspect of home building, with the exception of the luxury market. Escalating land and construction prices always have been a part of this cyclical industry and this cycle is no different. Cost-conscious design and creative floor plans can allow builders to compete in any market. And as buyers are priced out of single family and have to move to multifamily, I am happy to say there are new innovative types of housing being created even today that will allow our industry to meet the Boomer’s expectations regardless of where we are in the cycle.