What do seniors, Baby Boomers and millennials have in common? More than you might think, when it comes to housing.
At CREW Boston’s October luncheon panel at the InterContinental, panelists Ted Tye of National Development, Larry Gerber of Epoch Assisted Living, and Aeron Hodges of Stantec talked about the current state of the Boston housing market, what millennials and seniors are looking for, and how their needs and demographics are already changing the market. Here are some key takeaways from the discussion:
- The current state of the market. As millennials and seniors alike make their way into the city, residential and mixed-use buildings are competing in an “arms war” over amenities to stay top of mind for potential tenants. They’ve identified the differentiators that will set them apart. For millennials, 40 percent of whom own pets, apartment buildings are integrating amenities like pet washing, walking and play spaces, laundry services, fitness centers, bike racks and shared social gathering spaces. For those courting seniors, assisted living facilities are expanding beyond the typical offerings of catered meals and are including such things as chauffeurs. Meanwhile, prices continue to go up everywhere, even though 10,00 units of new housing were built in Boston this year, inching toward Mayor Walsh’s goal of 50,000 new units (see Housing a Changing City: Boston 2030.)
- Millennials and the housing market of the future. Forty two percent of the Boston population are millennials, and more than 50 percent pay more than 30 percent of their income towards rent each month. With such staggering numbers, it’s no surprise that millennials will continue to be drawn towards Compact Urban Living because it’s affordable, sustainable, social and optimizes spaces. They’re happy to live in a smaller space with less furniture as long as they can still take advantage of some of the top-of-the-line amenities mentioned above without breaking the bank. Projects like Hearth House will give millennials the amenities they want with a price that’s reasonable in the city. They’d rather bike to work than drive, and would like to be within walking distance of a grocery store. They are tech-savvy and value sustainability and want their apartment to reflect that.
- What seniors want. Baby Boomers, the youngest of which will attain senior status in the next decade, have very different housing wants and needs from the Silent Generation. They’re working (and living) longer, are active and fit, and are tech-savvy. They’re seeking out a more urban lifestyle, although they still want to stay close to family. And like millennials, they also value amenities, including on-site garages, pet services, on-site laundry and fitness centers, elevator access and outdoor space.
- Seniors and the housing market of the future. Eight in 10 Baby Boomers say they want to remain in the city when they are 80+, and from 2025 to 2050, the 80+ population will increase from 12.1 million to 32.6 million. Since the majority of the greater Boston area’s senior housing is in the suburbs, there will be a growing demand for senior housing in the city that provides the amenities seniors increasingly prioritize. Developments like Waterstone at Wellesley and new projects like Waterstone at The Circle in Brighton’s Cleveland Circle will help meet this need.
As millennials and Baby Boomers alike flood to the city, it’s clear that urban living isn’t going anywhere. While rents are likely to remain high, developers can get ahead of these generational shifts by providing smaller scale, affordable urban housing with amenities catered to the needs of their tenants, from millennials to seniors.