When their four children were growing up, Billy and Erin Shipley had room for their family to grow: a two-story, five-bedroom house in Sugar Land, Texas, with a large yard and pool. But as the kids grew up and moved out, the second floor was deserted and maintaining the lawn and pool became a burden.
Like many members of Generation X facing an empty nest, the Shipleys decided to look for a home that best suited their needs where they could eventually live out their retirement. They chose a one-story, three-bedroom house in Bridgeland, a planned community about 35 miles away. “I didn’t see it as a temporary exercise,” Ms Shipley, 46, said. “We could live here forever.”
Mr Shipley, 54, added that the only story was a draw. “It’ll be great not having to climb the stairs later,” she said.
Gen X is usually defined as those born between 1965 and 1980. Its oldest members are several years away from retirement, but they have already started thinking about where they will live in their 70s, 80s and even 90s.
The desire to grow up in one’s own home—rather than having to move in with family or into a nursing home—is common across many generations. In 2021, 88 percent of older adults, defined as those aged at least 65, lived in their own home, according to a report from the Harvard Joint Center for Social Studies.
“The overall demand is to maintain quality of life as you age,” said Joanna Frank, CEO and president of the Center for Active Design, a nonprofit organization that developed the Fitwel standard used by architects, designers and developers to promote wellness at home and at work.
But homebuilders say they’re starting to see growing demand among Gen X-ers for homes they can age in.
“We’re on the brink,” said David O’Reilly, the chief executive of Howard Hughes Holdings, which builds planned communities including Bridgeland in Texas. Many Gen X-ers still have children at home, he said, but they will soon be empty nesters. “That’s usually the tipping point,” he added.
Those who can afford it are willing to pay for extra space in case they need to care for other family members, such as grandchildren, grown children and elderly parents — and in many cases, they already are. In new developments, they’re looking for access to health and wellness amenities like hiking trails and tennis courts, as well as opting for home features like showers over bathtubs, for example, and asking for the latest gadgets to help them as they age.
“They have more market power than younger buyers,” said Jennifer Molinsky, director of the Housing and Aging Society Program at Harvard’s Joint Center for the Study. “They have a lot of wealth and are ready to make changes.”
Gen X homebuyers have a median income of $126,900, according to a report released Wednesday by the National Association of Realtors, or NAR, a trade group, and they’re still accumulating wealth. “They are in their peak earnings years,” said Jessica Lautz, the group’s deputy chief economist and vice president of research.
They’re also sitting on a pile of domestic equity. Homeownership among Gen X-ers was 72 percent in 2023, which was significantly higher than for millennials at 55 percent, according to a report by Redfin, a real estate services company.
Another factor that has prompted Gen X to consider moving earlier to buy a home for their retirement years is the housing market crisis, which was frozen for most of 2023 as high interest rates kept many buyers and sellers on the sidelines. Home prices rose 6 percent in January from the same month a year ago, according to the Case-Shiller home price index, and many potential buyers worry that prices will continue to soar, hampering their ability to afford finance a house later.
“If they’re shopping for homes, given the tight market and remote work, I think you’ll see more Gen X-ers view a home purchase as a home for the rest of their lives,” said Cristian deRitis, deputy chief economist. at Moody’s Analytics.
They don’t necessarily trade down in terms of space or quality, he added. In fact, some may be looking to trade up, especially if they are buying what will be their last home. “This is my 30-year-old house, not my five-year-old house,” he said.
Many Gen Xers are in the sandwich generation, or supporting children (some of whom are adults themselves) and parents at the same time. To manage care, some homebuyers are choosing three- and four-bedroom homes to accommodate their multigenerational households.
“It’s a persistent trend. it’s not a flash in the pan,” said Dr. Lautz, an economist at NAR, who found that 19 percent of Gen X-ers who bought a home in 2023 bought a multigenerational home. “Gen X-ers seem to be taking care of parents and have younger adults boomerang back into their homes.”
Now that their children are grown and moved out, the Shipleys in Texas only have to care for their labradoodle, Clyde, but having three bedrooms means they can accommodate the family if needed. “We want our kids to come back and sleep when they visit,” said Mr. Shipley, who added that he and his wife have room for their parents, who are in their 70s and may need to live with them for some time. day. .
GL Homes, a developer in Sunrise, Fla., with a dozen planned communities in the state, has noticed a shift in demand, said company president Misha Ezratti.
“People are moving into their forever home a little earlier,” he said. “You’d think they’d scale back, but after the pandemic, they still need the space.”
GL Homes responded by designing floor plans that appeal to Gen X-ers, including Melissa Radin, a career coach in Livingston, NJ, who owns several rental properties in Florida. When she recently discovered that her real estate investments had doubled in value, she and her husband, Michael, decided to buy their retirement home now.
“I wasn’t going to buy a house so early, but I know I’m going to have to pay more, so I jumped,” Ms Radin, 57, said. He took up a three-bedroom home in a community developed by GL Homes in Port St. Lucie, Fla.
Thinking ahead to a time when their bodies may not function as well, Gen X-ers are asking for features like raised electrical outlets and toilets with higher seats.
“I asked for custom pullouts because I don’t want to bend over to open a cabinet,” Ms. Radin said. She wanted a shower in the master bathroom, but made a concession for the younger members of the family. “I’m going to have grandchildren and I need a bathtub in the house,” she said.
Part of the adaptation also includes incorporating technology to help people as they age, such as sensors in floorboards that can tell if someone has fallen and even send alerts for help, said Ms. Frank of the Center for Active Design. “Developers know that this generation is health conscious and much more tech savvy,” he said.
Frank C. Parker III, a certified financial planner with Wells Fargo Advisors in Cincinnati, said he and his wife, Mika, sought a state-of-the-art facility for their retirement home in Boca Raton, Fla., to help them set up lights, music and security alarm.
“We wanted a smart home that we could control from phones and apps and the wall,” said Mr Parker, 49.
He added that the Florida lifestyle was also a draw. “We’re tennis players,” he said. We love the beach, the ocean and the pool.
Others say they want to stay healthy as they approach retirement. Mr Shipley said he and his wife liked to keep fit and Bridgeland had amenities such as swimming pools, bike paths and fitness classes within walking distance.
GL Homes adds more amenities for active adults, like a cold tub and pickleball courts.
“We didn’t expect fitness to be such a big thing,” Mr Ezratti said.
