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Retirees fuel construction
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April 25, 1997: 8:32 p.m. ET
Aging baby boomer population fueling rising trophy home demand
From Correspondent Rhonda Schaffler
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NEW YORK (CNNfn) - The most dramatic trend in the housing market currently is a boom in construction of high-cost trophy homes.
But housing market analysts say the more significant and lasting trend is the rising demand for new retirement homes fueled by growing numbers of aging baby boomers.
In one New Jersey retirement community being developed by U.S. Home Inc., homes are being sold as fast as they are constructed. The company sold 196 homes here last year and officials are expecting 1997 sales to be even higher.
"Demand has been so strong that when we open a section, we actually have people sleep over in their cars to get the more desirable locations," said Tom Grace, sales consultant at U.S. Home.
Aging baby boomers are giving new life to the housing market. They are a growing population with a higher net worth than younger home buyers.
Peter Dannenbaum, housing analyst at Morgan Stanley, said home builders are seizing on that opportunity by building what's known as active retirement communities featuring swimming pools and golf courses. (120K WAV) or (120K AIFF)
Demand for retirement housing has always been strong in retirement hotbeds such as Florida and Arizona, but it's growing to a national trend.
U.S. Home's development in New Jersey is evidence of that. The company said it will built another 3,000 houses here over the next two years.
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Morgan Stanley & Co.
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