Currently, about 12 percent of the world's population is aged 60 years or above. In the United States, more so, about 27 percent of the population will reach 60 years or cross it by 2050. A major demographic in the country is rapidly aging and Forbes has compiled a list of cities that have the most graying population.
To compile the list, the publication looked at the change in population of senior citizens in major metropolitan areas with more than 1 million residents between 2000 and 2013.
Forbes found that Florida continued to be the retirement haven. In Tampa-St. Petersburg, 18.2 percent of the population was old while in Miami, 16.7 percent of the population was aged 65 years or above.
Below are the top seven areas that have being seeing an upsurge in the older population:
1. Atlanta - increase in senior population from 2000-2013: 73.5%
2. Raleigh, N.C. - increase in senior population from 2000-2013: 96%
3. Austin, Texas - increase in senior population from 2000-2013: 91.7%
4. San Jose, Calif. - increase in senior population from 2000-2013: 40.1%
5. Denver - increase in senior population from 2000-2013: 57.1%
6. Dallas-Fort Worth, Texas - increase in senior population from 2000-2013: 64.4%
7. Jacksonville, Fla. - increase in senior population from 2000-2013: 54.2%
The report also noted that the baby boomers were far less affected by the housing bust than younger households and their incomes increased at a faster pace than the other age demographics during the recovery. Most of the baby boomers have a net worth that is 2.5 times more than the average household net worth.
While that might be good news for the senior citizens, the whole shift in the demographic may not be too cheery for the housing market. In a 2013 feature, Richard Burgess wrote for NuWire Investor that as more people age, they would want to downsize as empty nesters. While they would not really have a problem finding a smaller residence, selling off big dream homes could be a chore.
In fact, that is exactly what's happening now. A recent Wall Street Journal feature sheds light on how dream homes and larger estates take longer to sell. With families shrinking and people spending more time at work, smaller homes are more in demand now.
This could very well trigger off a housing asset bubble of its own, Burgess explained.
"Of course, if prices fall far enough, these homes will definitely come within reach of minorities - but by that point, we already will have experienced the housing bust that we set out to avoid," he wrote.
Another separate study conducted by the Harvard Joint Center for Housing Studies & AARP Foundation revealed that as majority of the U.S. population begins to age, housing will become a problem in the near future.
Take a look at the worst 10 countries to grow old in here.
