Anticipating the Senior Housing WAVE of Generation “X”

In 2005, the first wave of Baby Boomer’s began turning 60 years of age. Our focus, as developers of senior housing has been meeting housing demand for that key segment. However, few people realize that Generation “X” (Begining in1965) will start turning 60 in 2025 (6-years).

In an attempt to meet the housing demand, which is rapidly approaching, we need a better understanding of who is Generation “X”?

• What shaped Generation “X”;

• What are their characteristics, thought processes, expectations, and preferences of Generation “X”;

• Where is Generation “X” heading in the near and long-term future.

Developing an accurate picture of Generation “X”, where they come from, where they are now, and where they are heading is imperative in understanding, designing and pricing their future senior housing needs and preferences.

Laurie Goodman who studies Generation X is paraphrased as saying;

“Xers were children during a time of shifting societal values. As children they were sometimes called the “Latchkey” generation due to reduced adult supervision as children compared to previous generations. This lack of supervision was attributable to increasing divorce rates and increased maternal participation in the workforce. The situation was prior to widespread availability of childcare options outside the home.

Generation “X” Statistics

A 2010 Census report counted approximately 84 million people living in the U.S. who are defined as Generation X’; 

• 36% of Gen X think it’s likely they will need to dip into their retirement savings to pay for non-retirement expenses.

• 30% of Gen X admit having already withdrawn money held in their retirement plans for expenses other than retirement. 

• They believe nearly 50% of their retirement income will come from pensions, 401(k)s and other retirement plans, with only one-third from Social Security and 21% from savings and investments. 

• 70% are not confident in the ability of Social Security to provide them with full benefits. 

• 44% say they are not confident about having enough money for retirement, which is greater than Baby Boomers

• 74% say they were negatively affected by the Great Recession and 57% are still recovering from it.

• 35% expect their standard of living to decrease when they retire.

• 54% plan to work past age 65 or do not plan to retire.

Values Work/Life Balance

Sally Cane an attorney and researcher of Generation X is quoted as saying;

“Between 35 and 50 years old as of 2015, Generation Xers tend to be more ethnically diverse and better educated than Baby Boomers. Over 60 percent of Generation X attended college.

Unlike previous generations, Generation X works to live rather than lives to work. As of 2010, their assets were statistically double their debts. Compare this to those born during the more frugal years of the Depression and World War II -- this generation's assets were valued at 27 times their debts that same year."

Gen Xers, on the other hand, were mostly in their 30s and early 40s when the housing crisis hit and were just old enough to have bought a house. By 2009, many of them found themselves underwater on their mortgage or in foreclosure and forced out of their home.

Suntereo is continuing its work on understanding Generation “X” and developing senior housing to meet their lifestyle, preferences, and unique budgets. Previous assumptions of assets and resources used for Baby Boomers requires a significant change in standard senior housing industry underwriting for Generation X. In addition, we are also evaluating and redefining the priority of our elective services versus necessitated care, unit sizes, common area components and uses, amenities, staffing and changing lifestyles to welcome in Generation "X" seniors. If you would like discuss the next wave of senior housing for your company, please contact us.