In recent years, a significant portion of demographers’ time has been focused on the impact an aging population will have on economies. For real estate investors, the issue is intimately important to the future value of one’s investment.
Which areas are becoming older? Which are younger? Can you guess the top aging population areas (metropolitan statistical areas, MSAs)? Can you guess the youngest MSAs?
Here’s a look.
The Oldest MSAs
The MSAs with the oldest population bases – and thereby representing greater risk for real estate investing – is shown below.
Interestingly, the top four spots are in Florida: The Villages, Florida; Punta Gorda, Florida; Homosassa, Florida; and Sebring, Florida. The 60+ population in these areas are 66.4%/49.6%/45.1%/42.4%.
Other areas with very old populations include Prescott, Arizona; Sebastian-Vero Beach, Florida; North Port-Sarasota-Bradenton, Florida; Barnstable Town, Massachusetts; Naples-Immokalee-Marco Island, Florida; and Lake Havasu City-Kingman, Arizona.
The Youngest MSAs
Next, the top 15 youngest MSAs. Before looking, can you guess which areas show up on top?
The youngest MSA is the Provo-Orem area in Utah with 37.5% of its population under 20. The Provo-Orem area is followed by Laredo, TX with 36.3% and McAllen-Edinburg at 35.9%.
Other members of the top 10 include Logan, Utah; Idaho Falls, Idaho; Brownsville-Harlingen, Texas; Visalia-Porterville, California; Ogden-Clearfield, Utah; Merced, California; and Odessa, Texas.
When looking at places for real estate investing, looking at the demographic makeup of the area is always good practice.