Generation X members, those born between 1965 and 1980, are changing retirement norms by modifying their housing choices, gravitating towards smaller homes in close-knit communities or multi-generational homes. They are redefining retirement by making conscious adjustments that cater to their unique desires and needs.
Data reveals Generation X has a significant homeownership rate, with approximately 72% holding property in 2023. This puts them ahead of millennials, who have lagged behind due to challenges in the housing market, economic factors, and lifestyle choices. Still, Generation X’s resilience in maintaining a foothold in the housing market in constrictive conditions illuminates their nature of adaptation.
This generation also manifests a preference for age-friendly homes, having resources to influence housing market trends.
Gen X’s unique approach to retirement housing
Approximately, nine out of ten adults aged 65 or over choose to stay in their homes, valuing an environment that promotes healthful aging and retaining independence in familiar surroundings. This points to a significant shift towards designs and facilities that accommodate aging.
Economically stable, with a median income of approximately $126,900, Generation X leans towards properties in strong community neighborhoods offering customization opportunities. This demographic maintains the dual focus of individuality accommodated within a community setting, proving the generation’s unique real estate preferences.
The recent rise in interest rates, due to tight monetary policies by the Federal Reserve, boosted this population’s urgency to secure their retirement spaces. Many expedited their plans to avoid future price hikes as increasing interest rates contributed to the scarcity of affordable housing units.
Additionally, the transition towards telecommuting has rendered homeownership a more appealing option, functioning not just as a place of residence but also as a space for work, relaxation, and personal growth. Despite the challenging housing market of high prices and stringent lending standards, Generation X continues to show innovation in navigating these issues, affirming their comprehensive approach to home buying.
