Bridge Park developers eager to begin construction, have high hopes for housing

Hoping for an update on the new Bridge Park area in Dublin? You're in luck. ThisWeek reports that construction may begin as soon as this month.

Crawford Hoying, the area's developers are anxious to begin construction on the area, as soon as possible. As Dublin residents may have noticed, the building demolition and land moving stages have already begun on the site.

Bridge Park is expected to host condos, offices, shops, and restaurants. Crawford Hoying predicts that their Bridge Park housing will be specifically attractive to “renters by choice,” or in other words, those individuals looking to downsize or who aren't quite ready to buy their own homes yet. The developers expect both empty nesters and young professionals to have interest in the apartments.

Company representatives also believe that their new apartments will benefit the city, as they will provide housing for those who would have otherwise left Dublin due to its lack of rental properties. They also noted that these apartments will solidify the “live, work, play” atmosphere of the Bridge Park development.

The apartments will range in size from studios, to one and two bedroom apartments. Amenities include granite countertops and stainless steel appliances.

The building of these apartments is projected to support the new Bridge Park area's reputation as a true destination location.

Via ThisWeek

Baby Boomers Staying Put

In the past, many empty-nesters downsized upon sending their children away for school and growing older. However, the Baby Boomers are defying this traditional pattern. With roughly 10,000 people reaching age 65 each day for the next 15 years, and 17% of the 76 million Boomers already in retirement, the decisions this generation makes are central to the housing market.  63% of Baby Boomers plan to stay in their current home once they retire, according to a survey of 4,000 Baby Boomer households conducted by the non-profit Demand Institute. Why? Many simply are not financially ready, with a substantial amount of equity tied up in their homes. The financial crisis caused the average Boomer household's net worth to drop from $200,000 in 2007 to $143,000 in 2013 according to Federal Reserve data. Additionally, the median outstanding mortgage balance for 50- to 69-year olds more than doubled from $48,743 in 1992 to $118,000 in 2013.

The financial situation is particularly tough for those also in the sandwich generation--middle aged people who find themselves supporting both aging parents and their children. This recent phenomenon can be explained by an increase in the average life expectancy in conjunction with an increased number of "adult children" living at home. A 2013 Pew Foundation survey of 2,511 U.S. adults revealed that at least 15 percent of middle-aged adults are financially supporting both their parents and children.

The Baby Boomers surveyed placed little weight on "aging-friendly" homes, with only 1/5 planning to live in a senior housing. This is despite the fact that roughly 75% reported serious health issues such as arthritis or high blood pressure.

Columbus, OH One of Best Markets For Landlords

RealtyTrac studied 370 major U.S. counties in order to determine the most attractive markets for landlords. Its results are based on factors including unemployment rates, median home prices, average rents, and demographics. An article released by CNNMoney states that, regarding demographics, a presence of large millennial and baby boomer populations is ideal because both groups are undergoing major life changes that sometimes entail changes in housing. While a significant number of baby boomers move to Florida, millennials are more spread out across cities such as Philadelphia, Pennsyvania and Atlanta, Georgia.

The results list Columbus, OH as the eighth best market for landlords. The median sales price for a home in Columbus is $125,000, while the average rent for a 3-bedroom place is $1,039 per month. This translates to a gross rental yield of 10%

The single best market in which to be a landlord is Anderson, South Carolina. Here, the median home sales price is only $69,900, and the average rental rate (again for three bedrooms) is just under $900, resulting in a 15.3% gross rental yield. Other top ten markets include Gainesville, Florida, Pittsburgh, Pennsylvania, and Charleston, South Carolina.

The Baby Boomer Burden

The more Baby Boomers entering retirement, the greater the housing strain to accommodate them. FiveThirtyEight Economics reports that, at 14.5% in 2014 and a projected 20.9% in 2050, the U.S. has a high concentration of residents aged 65 and over. A report published by the Harvard Joint Center for Housing Studies and the AARP Foundation recently revealed that the number of adults 65 and over will more than double to 73 million by 2030.

Still, other countries have an even higher proportion: Japan tops the chart with 25.8% in 2014 and a projected 40.1% in 2050. Other countries with a high concentration of seniors include developed countries such as Germany, France, and Canada.

Unfortunately, retirees have less savings (partially attributed to the financial crisis) and carry more debt than previous generations: 70% of Boomers between 50 and 64 and 40% of Boomers 65+ still owed money on their home in 2010. Non-housing debt (such as credit card and auto loan debt) among boomers aged 65+ surged from $4,300 in 1992 to $7,200 in 2010. CNN Money brought attention to the fact that the number of senior households living on less than $15,000 (below the poverty line) is expected to increase by an astonishing 37% in 10 years. The fact that many will have to put over 30% of their income toward housing means they will have to cut back on other expenses such as medical care and transportation.

Federal rental assistance does exist; however, only one-third of eligible low income seniors received assistance in 2011. Opinions on how to remedy this precarious situation vary, from improved in-home senior programs, senior tax relief, and increased federal rental assistance.

What does this mean for the rest of the population? When Boomers retire they reduce production and consumer spending and increase dependence on others (such as their children and the government), resulting in overall slower economic growth.  Key indicators that speak to this trend include the labor force participation rate (the ratio between those working or actively looking for work and the overall population) and  the dependency ratio (the number of people outside of working age--under 18 or over 64--per 100 adults between those two limits).