The decline in U.S. home prices continued to accelerate in the 4th quarter according to the S&P/Case-Shiller national home price index. The drop was the largest in the index’s 20 year history. The lower home values threaten the economy by making consumer feel less wealthy and less willing to spend money on discretionary items.
This trend does not bode well in the short term Senior Housing projects across the country as this will make seniors more reluctant to sell their homes and move. Additionally, the decline in housing prices will make seniors more fiscally conservative as many senior’s largest asset is the value of their home and the thought of having to sell that home in a declining or flat market will add fuel to the concerns over their ability to live comfortably in retirement. While the short term housing market challenges persist, the general trend for seniors tomove to senior housing complexes and communities maybe a forestalled for the next six to twelve months.
For more information on the case S&P/Case-Shiller survey, click here.
