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Selling homes to
seniors isn’t what it used to be. That’s because seniors aren’t who they
used to be. In fact,
"active" seniors are the most promising housing niche to emerge in
decades. Nowhere was that more apparent than in Detroit at the recent Seniors
Housing Show 2000 presented by the National Association of Home Builders and the
National Council on Seniors Housing. Everybody there was
talking about planning, financing, designing, building and marketing homes to
America’s growing 55-plus market. Builders, developers, architects and others
were eager to learn all they could about everything from golf course and resort
properties to independent living apartments to "service-enriched"
housing. "The
62-year-olds today are not the same as they were 30 years ago," said Robert
Karen, president of the Southeast Region for K. Hovanian Enterprises, Inc.
"They are driven by fitness, are younger of mind and have different buying
habits. They want indoor pools, free weights and walking trails . . . not just a
pottery class." Other developers
echoed Karen’s comments. The "younger" senior homebuyer was the
focus throughout the show. "Today’s
older adults may be moving into retirement housing, but they may not, in fact,
be retired," said Christopher Cady, regional president of Pulte Homes.
"Many are going into second careers, doing work they’ve always wanted to
do. So homes wired for new technology, such as Internet access in a home office,
are important to them." "Those who are
now entering retirement will likely have another 30 to 40 years ahead of
them," said Eric Belsky, executive officer of the Joint Center for Housing
Policy Studies at Harvard University. "They are asking themselves, ‘What
am I going to do for the second half of my life?’ Where am I going to
live?’" Research shows that
seniors currently make up the largest group (nearly one-quarter) of homeowners.
Although they relocate less often than younger age groups, one-tenth of all new
homebuyers are between the ages of 55 and 64; another tenth are age 65 or older. "Baby boomers
are already making a difference in the homebuying market as the leading edge of
boomers reaches their 50s and starts buying first and second retirement
homes," Belsky said. "And their influence will mount over the coming
decade when those ages 55 to 64 will grow by nearly seven million
households." Boomers expect more
from their retirement that did seniors in the past. "In the ‘70s
and ‘80s, the typical senior buyers were frugal," said Gary Newman, vice
president of sales and marketing for Del Webb Corp. "They bought retirement
homes with no frills, perhaps located in a golf community. It was their little
piece of heaven. Today, these homebuyers pay $200,000 and up for a home. They
want a place that’s aesthetically pleasing with lots of amenities." In the past, senior
homeowners sold their primary residence to buy a retirement home at half the
price, Newman said. They would put half the equity from selling their primary
residence into the new home and put the other half in savings. Today they are
likely to sell their home, put all the equity into the new one, plus take out a
mortgage. Today’s
homebuilders are catering to seniors in various ways, such as:
James
Migliore,
president of the special projects division of Lennar/US Home Corp., notes that
today’s consumers are smart and have no sense of urgency to buy a home. "They take
time to think and gather information and may make 25 trips to see a place before
they purchase. Salespeople need to know this so they won’t get discouraged.
It’s a time-intensive business but rewarding because you know that once these
empty-nesters make the decision to move, their lives will be enhanced by the
amenities and social opportunities." If you’re a
senior in the homebuying market who is "turned off" by a developer who
doesn’t seem to understand what you want, keep looking. There are plenty of
builders eager to provide what you want. |
