A recent article in The New York Times stated a typical working family headed by someone 55 to 64 years old has only $104,000 in retirement savings, according to the Federal Reserve’s Survey of Consumer Finances—not nearly enough. The Center for Retirement Research at Boston College estimates half of American households will fall short of sufficient retirement income.
The third macro trend, rising property prices, may prevent boomers from borrowing for a new house, but it does offer the opportunity to unlock the equity they have in their current home and downsize to a home in a manufactured home community. Manufactured homes are considerably less expensive than traditional construction methods, but as MHProNews knows, the quality is equivalent if not better.
As Terence Duffy says, “Take away the huge hurdle of upfront land costs, replace it with a site rent and all of a sudden housing becomes much more affordable.” ##
(Photo credit: masterfile)
