As Generation X approaches retirement, they're thinking about where to live

When they were raising their four children, Billy and Erin Shipley had space to grow their family: a two-story, five-bedroom house in Sugar Land, Texas, with a large yard and a pool. But when the children became adults and moved out, the second floor became 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 better suited to their needs where they could eventually live in retirement. They chose a three-bedroom bungalow 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 single story was a draw. “It would be nice not to have to climb stairs later,” he said.

Generation X is typically defined as those born between 1965 and 1980. Its oldest members are still several years away from retirement, but they are already starting to think about where they will live in their 70s, 80s and even 90s.

The desire to age in one's own home — rather than having to move in with family or into a retirement home — is common among many generations. In 2021, 88% of seniors, people who are at least 65 years old, lived at home, according to a report From the Harvard Joint Center for Housing 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 that developed the innovation. Fitwell The standard used by architects, designers and developers to promote health at home and in the workplace.

But homebuilders say they are starting to see increased demand among Generation X members for homes they can live in.

“We're on the cusp of that,” said David O'Reilly, CEO of Howard Hughes Holdings, which builds planned communities, including Bridgeland in Texas. Many Generation Xers still have children at home, but they will soon be empty nesters, he said. “This is usually the turning point,” he added.

Those who can afford it are willing to pay for additional space in case they need to care for other family members, such as grandchildren, adult children, and elderly parents — and in many cases, they already do. In new developments, they are seeking access to health and wellness amenities, such as hiking trails and tennis courts, as well as opting for home features like showers instead of bathtubs, for example, and requesting the latest gadgets to help them as they age.

“They have more market power than younger buyers,” said Jennifer Molinsky, director of the Community Housing and Aging Program at the Harvard Joint Center for Housing Studies. “They have a lot of wealth and are willing to make changes.”

With a median income of $126,900, members of Generation X are still amassing wealth, according to a report released Wednesday by the research institute. National Association of Realtors, or NAR, a trade group. “They are in their peak income years,” said Jessica Lautz, the group's deputy chief economist and vice president of research.

They're also sitting on a pile of home equity. Homeownership among Gen Report from Redfina real estate services company.

Another factor prompting Gen House prices rose by 6 percent in January compared to the same month last year, according to a report issued by the European Central Bank Case-Shiller Home Price IndexMany potential buyers fear that prices will continue to rise, hindering their ability to purchase a home later.

“If they're shopping for homes, given the tight market and remote working, I think you're seeing more Gen In Moody's Analytics.

He added that they do not necessarily compromise in terms of space or quality. In fact, some may be looking to trade up, especially if they are purchasing what will be their last home. He said: “This is my home of 30 years, not my home of five years.”

Many members of Generation X find themselves in the sandwich generation, or supporting children (some of whom are adults themselves) and parents at the same time. To manage caregiving, some homebuyers choose three- or four-bedroom homes to accommodate their multi-generational family.

“It's a stubborn trend. “It's not just a blip on the horizon,” said Dr. Lautz, an economist at NAR, who found that 19 percent of Generation Xers who bought a home in 2023 bought a multigenerational home. “Generation

Now that their children are grown and moved, the Shipley family in Texas only has to care for their labradoodle, Clyde, but having three bedrooms means they can accommodate the family if necessary. “We want our kids to come back and have a place to sleep when they visit,” Mr. Shipley said, adding that he and his wife have a place for their parents, who are 70 and may have to live with them one day. .

GL Homes, a developer in Sunrise, Fla., that has dozens of master-planned communities in the state, has noticed a shift in demand, said Misha Ezrati, the company's president.

“People are moving into their permanent home a little earlier,” he said. “You would think they would downsize, but after the pandemic, they still need the space.”

GL Homes responded by designing floor plans that cater to Generation X, including Melissa Radin, a career coach in Livingston, New Jersey, who owns several rental properties in Florida. When she recently discovered that the value of her real estate investments had doubled, she and her husband, Michael, decided to buy their retirement home now.

“I didn't want to buy a house this early, but I knew I would have to pay more, so I decided to take the leap,” Ms. Radin, 57, said. It acquired a three-bedroom home in a community developed by GL Homes. In Port St. Lucie, Florida.

Thinking ahead to when their bodies might not be performing well, Generation

“I ordered custom pulls because I didn't want to bend over to open a safe,” Ms. Radin said. She wanted to shower in the master bathroom, but made a concession for younger family members. “I'm going to have grandchildren, and I need a bathtub at home,” she said.

Part of the customization 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 to call for help, said Ms. Frank of the Center for Active Design. “Developers realize that this generation is health-conscious and more tech-savvy,” she said.

Frank C. said: Parker III, a certified financial planner for Wells Fargo Advisors in Cincinnati, said he and his wife, Mika, sought out a state-of-the-art setup for their retirement home in Boca Raton, Fla., to help them get organized. Lights, music and security alarm.

Parker, 49, said: “We wanted a smart home that we could control through phones, apps and the wall.”

The Florida lifestyle was also a draw, he added. “We are tennis players,” he said. “We love the beach, ocean and pool.”

Others say they want to stay healthy as they approach retirement. Mr Shipley said he and his wife like to keep fit, and Bridgeland has amenities such as swimming pools, cycling trails and fitness classes within walking distance.

GL Homes is adding more amenities for active adults, including a cold plunge pool and pickleball courts.

“We didn't expect fitness to be such a big thing,” Mr. Ezrati said.