Green Retirement Communities Start to Blossom

March 31 — Baby boomers are known for their devotion to preserving the environment – at least when they are not driving their SUV’s. So the big question is, will the folks who pioneered Earth Day look for green (sustainable) retirement and active adult communities? Just as important, will the marketers of those communities recognize the need and make the product available in an appealing concept?

We recently came across some examples of green communities, which is encouraging. Shea Homes, a large national home builder, has announced that environmentally friendly homes will be the focus of some of its new developments in Florida and other sun belt states. These homes will be so-called “eco-friendly”, and will have energy saving features such as solar attic fans, motion-sensor triggered lighting, energy-efficient windows and appliances, and garages with electric-vehicle charging stations. Some materials like insulation will be recycled. According to a report in Off the Grid, Shea says it has “focused on small, incremental green features that will add up to important energy savings.”

Meanwhile other developments are getting on the environmental, or green, bandwagon as well. Some retirement homes being built for the military in San Antonio feature solar hot water heaters. A retirement community builder in Maine, Sea Coast Management Co., has offered incentives to install solar water heaters as well as a Toyota Prius to home buyers.

Cohousing communities tend to be at the vanguard of green retirement communities. Although these communities might be a touch too new age for many people, they are almost always interested in preserving the environment, as well as sharing common facilities and ongoing connections with neighbors. These intentional neighborhoods, created and managed by residents, offer an innovative solution to today’s environmental and social challenges. Here is a link to a directory of co-housing communities.

How green is green? As Carol Gulyas wrote at Topretirements last year in “Looking for Green Retirement Communities“, it is important to evaluate “eco”, “green”, and “environmentally sustainability” claims carefully and sceptically. Many active adult community builders talk about green, but the reality is not always up to the promise. She suggests that you learn more about what it really means to be environmentally friendly – and then ask questions of builders to be sure. Of course part of the equation is how much baby boomers will pay for when it comes to the environment. That’s because for now anyway, being green takes some green.

Charlotte is Sole Market with Higher Prices in January

March 28 — January housing statistics from Case-Shiller were released this week – and the news continues bad for sellers, good for buyers. Of the 20 metro markets that this firm tracks, only 1 metro managed higher real estate prices vs. the year ago period, Charlotte (+1.75%). The 19 others had declining prices, with 10 of them experiencing double digit declines. Las Vegas, Los Angeles, Phoenix and San Diego had the biggest drops (Las Vegas went down over 19%). Overall the 20 city index showed a 10.7% decline in January 2008 vs. Jan. 2007.

Meanwhile industry pundits had plenty of theories about what this all means, and above all, when it will get better. One of the most interesting we read was by Barry Ritholz. His point is that until illogical sellers get the picture that there is too much inventory out there and reduce their prices, the market will be soft.

Another provider of housing data ran into flack this week over the positive way it slanted its reporting of its February numbers. The NAR (National Association of Realtors) chose to highlight sales changes from January to February, instead of the more traditional year to year comparisons (thus eliminating seasonality). The effect was to mask the declines that actually existed year to year – although sales increased 3% from January, they were 24% behind the year ago period.

Other pundits wonder when the market will turn around – can the end of the bad news be near?

Baby Boomers Not All That Big on Downsizing

March 24 — The stereotype would have you think that the hordes of baby boomers moving into active adult communities can’t wait to move into a smaller house. According to a new study from the National Association of Home Builders (NAHB), however, the reality is somewhat different.

The study, “Profile of the 50+ Housing Market”, points out that more than 85 million people will be 55+ by 2014. Many will be buying in homes specifically built for 55+ buyers, and these won’t be all that small – the average home will still have more than 2 bedrooms and over 2,000 square feet for living. Yards and other maintenance-requiring items will be downsized, however.

The study found at least one difference between homes built in age restricted communities vs. those for 55+ buyers in general. Homes in restricted communities are less likely to have specialty rooms like dens, offices, or libraries.

Multiple reports in the press agree that buyers in the 55+ market are stronger prospects and thus less affected by the current real estate slump than other home buyers. Boomers tend to have more equity in their homes as well as other substantial assets. Even if they have to sell their existing home for less than it was worth 2 years ago, they can still be comfortable buying a new home. Few need to take out a mortgage or qualify for financing. Most plan on buying a better quality home than they have now.

A recent article in the Arizona Star backs up the conclusion that the market for active adult communities is in much better shape than the overall housing market. Insiders quoted there agree that retiring baby boomers are ready to move and they have the resources to make that happen. There is pent up demand for these homes, with the activities and amenities found in these new communities often more important than the homes themselves. More than half of those planning to buy in 55+ communities plan to purchase a home in the same county as where they currently live.

Active Adult Communities on an Advertising Blitz

March 18 – Maybe it is the softer market for real estate and active adult communities. It could be a bold move to capture market share when many real estate developers are down. Or perhaps it is just an awakening to the possibilities. Whatever the reasons, a number of leading active adult communities have been on an advertising tear lately, placing their ads in venues where they haven’t been seen before.

Leading the charge has been The Villages, the active adult behemoth south of Ocala, FL. Anybody who has been watching golf on network television lately has been exposed to their messages many times by now. In Topretirements’ experience, this is the first time that a retirement community has gone to national television to look for prospects. They also seem to have a big presence at some of the baby boomer websites such as eons.com. (we are waiting for them to see the light and advertise at Topretirements!)

Many other active adult communities are relying on the most successful new media, paid search. Go to any web page having to do with retirement communities or active adult communities, and you will see those nice little ads on the side from Google, Yahoo, and MSN. Lake Ashton, Robson, and Bellavita are some of the leading advertisers we have seen using this media.

The most prolific advertiser of them all is Erickson Communities. Not only do they seem to have an endless stream of press releases and ubiquitous newspapers, but they also have their own retirement TV channel – Retirement Living TV.

Other advertisers are relying on old standbys like newspaper ads, billboards, and direct mail.

What does this all mean for you, the baby boomer who is looking for the right active adult or over 55 community? Other than being an interesting phenomenon, we think that all this new advertising says that active adult communities have arrived as a big business. It is also a statement that the big players are open for business, eager to court and attract you as a potential buyer. So it’s a good way for you to find out about the best places to retire, right from your armchair.

Here’s how to get information about how to advertise at Topretirements

Baby Boomers Increasingly Anxious about Retirement

March 11 -  They’ve dreamed about it, and they have talked about it. Many have actually planned for it. But the one thing they have in common is this – just about everybody is worried about it. The “it” being retirement, which is drawing nearer and nearer for tens of millions of U.S. baby boomers.

Conversations on various discussion retirement forums on this site and at other baby boomer communities such as www.city-data.com reveal another side to the current retirement community diaspora that it is about to happen. That side of retirement and retirement communities is an anxious one, showing a depth (more…)

The Endless Retirement Cruise – Who Needs a Traditional Community

March 4 — Here’s a different approach to selecting a retirement community – don’t bother. Instead, why not travel the world. It can be cheaper, and it certainly will be more interesting than staying in one place. Topretirements came across 3 such recommendations this week, so there must be something to it.

Stephen Joel Trachtenberg, the dynamic former President of George Washington University, proposed on his higher education blog that one might consider taking up Cunard Lines on its (more…)