Boomers Downsizing to Apartments Still Want Home-Like Amenities
Transwestern’s upscale Hayworth apartments.
HOUSTON – (By Dale King, Realty News Report) – As baby boomers confront aging, empty nests and the rising costs of maintaining large homes, many are moving out of the family house and into apartment living.
These downsizers don’t want to sacrifice the comforts and distinctive touches that made their houses feel like home. They’re seeking apartments that provide familiar layouts, generous space and higher-end finishes while offering lower maintenance and convenience.
Recent trends in the multifamily market show developers responding to that demand. Transwestern Development Company, which builds office, multifamily, mixed-use and healthcare projects across the U.S., reports that developers are increasingly designing apartments specifically for the baby boomer demographic.
Boome r-oriented units often include features such as:
Larger floorplans with increased square footage and more bedrooms;
Traditional layouts that resemble the homes boomers are accustomed to;
Expanded storage both inside units and as additional rentable space within the community;
Upscale kitchen and bathroom finishes, sometimes with extras like wine chillers;
Premium community amenities such as pet services, concierge support, conference rooms, yoga classes and on-site dry cleaning — all provided in a calm, quiet environment.
Mark Culwell, managing director of Multifamily Development at Transwestern, says these findings come from multiple sources and observable market outcomes.
“About three years ago, while studying high-priced neighborhoods, I noticed an anomaly where per-square-foot rents were higher for three-bedroom units than for one-bedrooms, and those three-bedroom units were fully occupied,” Culwell said. “That prompted us to dig deeper and find supporting data showing older Americans increasingly prefer larger apartments.”
This movement of boomers into apartments is reviving demand for three-bedroom units across the multifamily market.
To satisfy this demand, developers are building a higher share of three-bedroom apartments. Culwell notes market indicators in Houston, for example:
Three-bedroom units show the highest occupancy rates, around 94%;
Rent growth for three-bedroom units leads all unit types.
“When I built apartments in the 1980s, I stopped adding three-bedroom units because young buyers could purchase houses for what they would otherwise pay to rent three bedrooms. That segment declined for about 25 years,” Culwell told Realty News Report. “Now three-bedroom apartments are being built again—and not only in the suburbs.”
The shift toward larger multifamily units is spreading nationwide, with regional variations based on local conditions and preferences.
Transwestern’s data show that as of the third quarter of 2017, the average U.S. one-bedroom measured 874 square feet, two-bedrooms averaged 903 square feet, and three-bedrooms averaged 976 square feet. Buildings completed in the past 12 months have slightly larger averages: one-bedrooms about 935 square feet, two-bedrooms 945 square feet, and three-bedrooms 996 square feet.
Culwell adds that some three-bedroom apartments are being designed in the 1,800 to 2,200 square foot range, depending on location. While Houston’s demand for larger units also reflects the need to house thousands displaced by last year’s hurricane, in other markets like Dallas the trend is more a lifestyle choice.
