While millennials are known for their preference of urban living, in recent years “Baby Boomers” are increasingly giving up their sprawling yards and burdensome tax bills for the simplified digs of city life. Responding to this uptick in urban population, developers rush to build housing for these folks to stay. According to a 2017 Forbes magazine article, 33 of the largest metro areas in the U.S. grew at a rate slightly higher than 6 percent between 2010 and 2015. Although the growth is largely driven by the millennial generation, older Americans are getting on the wagon too. According to a previous report from Business Insider, the retirement of the Baby Boomer generation was a driving factor behind home downsizing and family relocation.
To Gordon Tang, who is the chairman of the commercial real estate investment company, American Pacific International Capital (APIC), this trend creates an opportunity for urban housing development. His group undertook the development of 25 Mason in San Francisco. This 12-story, 155-unit residential condo project has what city residents of all ages are looking for: parking spaces, nearby public transportation as well as ample shopping and dining options. Given that San Francisco added jobs eight times faster than housing since 2010, Gordon Tang knows that there’s going to be unmet demand for housing. According to the Forbes article, the millennial population in San Francisco and Oakland grew by 24.79 percent between 2010 and 2015. Business Insider adds that some states and cities have started supporting social welfare and benefit programs to aid the influx of older residents who’ll need more medical care and other assistance than their younger counterparts. The article also notes that some cities are looking hard at their transportation options to better suit the needs of older Americans. In fact, an AARP study found that half of the surveyed seniors think living “in a place where it’s easy to walk or near church or social organizations was important to them.”
After undergone historic review and various environment studies, APIC secured the development permit for 25 Mason project. It will not only provide much need housing for the local residents, but also generate great financial return for the shareholders. That’s why Gordon Tang decided to transform this underutilized parking lot into a housing project. It’s a smart investment strategy to capitalize on demographic movement, Gordon believes.