There will always be a need for affordable housing in this country. However, with 10,000 baby boomers entering retirement each day on a fixed income with little to no savings, the demand for affordable housing should reach a fever pitch in the coming decade.
According to the U.S. Census’s National Population Projections, the population aged 65 and older is expected to jump to 74 million by 2030, an increase of 33 million in just two decades.
Today, 30 percent of elderly renters are paying more than half their incomes on housing. The average senior citizen is living longer than ever before, yet has little to no retirement savings.
Good news – American’s are living longer. Bad news – the vast majority cannot afford to live longer.
While life expectancy is up, fertility rates are down. According to research put out by the hedge fund manager Stan Druckenmiller, currently there are ~5 workers supporting each retiree. Unfortunately, by 2030 that number will be only be ~3 and by 2050 it will be ~2.5.
Consequently, the current entitlement math does not work.
Our government has promised seniors far more than we can afford to pay. Without dramatic reform, entitlements (Social Security, Medicare, Medicaid) could act as a giant drag on the US economy, with higher taxes over the coming decades as fewer workers are available to support an aging population.
Needless to say, the middle and lower-income classes continue to struggle. In many American households, both the husband and the wife are working long hours, but it's still not enough. With each passing day, more Americans are losing their place in the middle class and this has pushed government dependence to an all-time high.
According to the U.S. Census Bureau and the Social Security Administration, 49 percent of all Americans now live in a home that receives money from the government each month and 51% of all workers in the United States make less than $30,000 a year.
As we've mentioned before, we’re not economists....but we're quite confident that the aforementioned demographic trends will positively impact the need for the most affordable housing option our nation has to offer: mobile home parks.
Park Street Partners and its investors take pride in helping lower-income and middle-class American families secure housing at an affordable price. We look forward to making a small dent in America's affordable housing crisis by increasing the supply of affordable housing in the markets we operate.