Monday, January 30, 2006

Baby boomers fuel trend in retirement housing

GLEN CRENO and JONATHAN J. HIGUERA The Arizona Rep

The Arizona Republic

Baby boomers who refuse to concede that they are getting old are changing the way home builder's think about retirement housing.

Builders long ago discarded the notion that retirement buyers wanted nothing more than a languid game of shuffleboard or golf followed by an afternoon nap. These days, retirement communities are bristling with fitness centers, nature trails and cybercafes.

"It used to be about the golden years," said Drew Smith, spokesman for Shea Homes' Trilogy retirement division. "We talk about it (now) as a place where you start your second life. It's not about slowing down."

At the year's major home-builders trade show in Orlando earlier this month, people packed into sessions on how to cash in on boomers, the 76 million people born in the United States from 1946 to 1964.

The National Association of Home Builders says the fastest-growing part of the housing market is the 50-plus segment of buyers that includes boomers, empty nesters, pre-retirees and other categories of older buyers. People 55 or older bought nearly a fifth of the 1.1 million new homes sold in the country in 2003.

Builders who hope to sell to boomers know they can't offer one-size-fits-all houses. They say boomers are a collection of diverse niches with a variety of demands.

Boomers are rejecting old assumptions about retirement, either by choice or necessity. Some people start second careers, perhaps opening a small business, sometimes out of their home. Also, the pension safety net is being cut away and medical care no longer is guaranteed, so there is more impetus to remain employed past the typical retirement age.

And traditional notions about paying off the homestead and staying put aren't as valid as they used to be. The national real estate boom has given many homeowners an equity windfall that lets them consider buying a new house without taking on a great deal of debt, if any.

"Many of them have paid off their homes, but with appreciation, they have the opportunity to buy a new home with cash and have money to spare," said Jacque Petroulakis, spokeswoman for Pulte Homes, whose Del Webb division was a retirement housing pioneer with its Sun City communities.

Jose Hinojosa, 57, exemplifies the wave of boomer buyers. He and his wife, Kady, 45, shopped all over the Phoenix area, in Sedona and in Palm Springs, Calif., before they bought a house on the golf course in Trilogy at Vistancia in Peoria.

Jose flew helicopters in the Army for 26 years before taking a job supervising a financial-services company's mail operations in Phoenix and Sacramento.

He retires in September and expects to take advantage of something Shea emphasizes in its marketing: a resort or experiential lifestyle, where homeowners hike, bike, swim, play tennis and golf, and ride mountain bikes.

"We didn't want anything to do with an old-folks community," he said. "We're not looking for that kind of lifestyle."

This year, Shea projects that it will close on 2,000 retirement units. By 2020, the company expects that number to hit 100,000.

People in this market don't want to be called "seniors," but they'd like builders to consider some needs as they age.

"Aging-in-place" features include major bedrooms on the first floor, higher sitting commodes, showers with built-in benches for sitting, and easier handling faucets.

Building for the boomer generation

home builders will focus on smart home design, cost-effective marketing techniques and a solid return on investment to grab the attention of savvy baby boomers.

Some design features builders are considering:

General design

• At least one single-level floor plan.

• At least one full bedroom downstairs

• In two-story plans, one hall closet on each floor designed for use in upgrading to an elevator or lift.

• Wider interior door openings, 32 to 42 inches versus the current 28-inch standard.

• Built-in night lighting.

• Lever door handles.

Kitchen

• Variable-height countertops.

• Lever-handle faucets.

• Cooktops and ovens with heat indicators, automatic shutoffs and controls within easy reach.

Bath

• At least one full bath downstairs.

• A ledge surrounding the tub.

• Room to maneuver.

• Easy access.

• Towel rods that double as safety bars.

• Walk-in shower.

• Anti-scald devices.

• Nonskid flooring.

Technology options

• Keyless entry.

• Emergency response system.

• Intercom/video system for front door.

• Upgraded wiring to handle multiple computers, home network, broadband communications, entertainment centers, video security system, etc.

• Television-based system controls (heating, air conditioning, key appliances, etc.)