HOT Condo Market Continues to Grow

(October 15, 2004) -- The national homeownership rate is on pace to hit a whopping 70 percent next year, with much of the growth tied to retirees between the ages of 55 and 74.



Homeownership in this age category rose just 9 percent during the 1990s but will likely post a 15-percent growth rate for the 2000-2005 period. Between 2005 and 2015, homeownership in the age 55-to-74 group is expected to soar 36 percent. Most older homeowners would rather pay $500 to $1,500 per month on maintenance than perform such tasks themselves, making condominiums a popular alternative to the traditional single-family home.



With single-family dwellings outnumbering condominiums 15-to-1, according to the Census Bureau, builders could find it profitable to "condo-ize" conventional single-family homes in the future. Demand for condominiums already has pushed the median price close to the $200,000 mark, surpassing the median single-family home price, says Economy.com economist Celia Chen.



Source: American Demographics (10/01/04);

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