Local Council Connection

PennDel Holds Kickoff Meeting: Panel Discusses Regional Market Trends

Southeastern Pennsylvania traditionally has been a hotbed for retirees, but the regional 50+ housing market has changed dramatically in recent years, according to experts from the newly formed PennDel 50+ Housing Council.

The PennDel 50+ Housing Council, which includes seven HBAs in eastern Pennsylvania and Delaware, held its kickoff meeting and presented a trends overview on June 16 in Valley Forge, Pa. A panel of experts discussed how the boomer generation has transformed the local housing industry, resulting in dozens of active adult communities being built over the past decade.

“Philadelphia has always been associated with assisted living, continuing care retirement communities (CCRCs) and other forms of service-enriched seniors housing,” said PennDel 50+ Housing Council Chair Barbara Kleger of Philadelphia-based 55+ consulting, a division of KD Partners, LLC. “But the market has progressively gotten a lot younger. The active adult industry is alive and well across the region.”

Susan Brecht of Brecht Associates, Inc., a nationally recognized market research firm based in Philadelphia, said that the empty nesters deserve much of the credit. Unlike previous generations, they are more likely to move to urban areas in search of cultural activities, entertainment and all that cities have to offer.

“Philadelphia isn’t considered a retirement destination, but it has a lot to offer,” Brecht said. “The cultural attractions, restaurants and shopping are a big lure, and many buyers want to live in a mixed-age environment. You are more likely to find that in an urban setting.”

Since many consumers continue to work, access to employment opportunities and shorter commutes to a job remain high on their priority lists. They also are looking for concierge and business services as well as pet walking and laundry/dry cleaning services. Lifestyle — as always — is the bottom line.

Builders are targeting urban locations such as Chicago, Detroit and now Philadelphia for active adult communities, a trend Brecht expects to continue.

Within Montgomery, Chester and Delaware counties, Brecht noted that more than 19 active adult communities either are being built or in the planning stages in their respective townships. She predicts that it could add more than 3,000 single-family homes, condominiums and town homes to the housing supply.

Robert Fuller, vice president of real estate development for Toll Brothers in Horsham, Pa., said his company currently has 16 active adult communities across the country and 36 more in the pipeline. Toll Brothers is planning several active adult communities in the region.

“Pennsylvania has one of the largest senior populations in the country,” Fuller said. “Builders like Toll Brothers will continue to build active adult communities to meet market demand.”

Remarkably, Brecht said that housing in the region remains affordable for many buyers. She noted that the cost for a single-family home of 1,300 to 2,300 square feet within an active adult community ranges from the upper $300,000s to the mid-$400,000s.

But Brecht was quick to point out that multi-story condominiums or communities with a mix of single-family homes and attached units are gaining popularity across the mid-Atlantic. These condo communities, which can resemble contemporary service-enriched seniors housing from the outside, often have a clubhouse that is part of the main building. The price tag for these multi-story condos ranges from the low $200,000s to more $1 million for a development in nearby central New Jersey.

Kleger said it’s an interesting time for the 50+ housing industry for builders across the region. She warned builders about the emergence of new competitors and the threat of substitute products. She said the competition and their consumers themselves wield more bargaining power than ever.

“The best thing you can do is to find your niche,” Kleger said. “Builders need to show buyers what makes them better and different.”

With thousands of people hitting retirement age over the next decade, Kleger predicts the 50+ housing market will continue to grow in the region.  

“The market is becoming a lot more competitive, but there are plenty of opportunities for builders who do their homework and know their marketplace and who listen to their buyers,” Kleger said. “Builders also have to be patient and persistent, and also keep up with what’s hot.”

Launched by the HBA of Bucks & Montgomery Counties and six other HBAs, the PennDel 50+ Housing Council was created to provide networking and educational opportunities for companies who serve this exciting and growing demographic group.

For more information on the PennDel 50+ Housing Council, contact Howard Cooper at 215-657-1300 or e-mail hcooper@hbahomes.com.

New Ohio 50+ Housing Council Forms

The Ohio Home Builders Association recently launched the Ohio 50+ Housing Council, a state-wide 50+ Housing Council. Ohio is now the 14th council affiliated with the NAHB 50+ Housing Council.

The Ohio 50+ Housing Council will serve the needs of builders, developers and other housing professionals across Ohio.

“More retirees staying ‘closer to home’ instead of relocating across the country,” said Ohio 50+ Housing Council leader Mac Kennedy of The Jerry McClain Co. in Newark, Ohio. “A state 50+ Housing Council will help builders and other industry professionals in Ohio meet the needs of these consumers.”

For more information, contact Mardy Patel at 614-228-6648 or mpatel@ohiohba.com.

Check out the list of local councils, or contact Jeff Jenkins at 800-368-5242 x8292 or jjenkins@nahb.com if you are interested in starting a local or regional council at your HBA. Or check out the 50+ Housing Council Local Council Resource for more details.

Speakers’ Bureau Directory Now Available Online

Want to find a speaker for an upcoming local 50+ Housing Council events or educational session? The 50+ Housing Council Speakers’ Bureau Directory is available online at www.nahb.org/50plus.

The 50+ Housing Council Speakers’ Bureau Directory includes past speakers from the International Builders’ Show and Building for Boomers & Beyond: 50+ Housing Symposium. The directory features experts in active adult, independent living and service-enriched seniors housing. It lists each speaker’s credentials, area of expertise and contact information. All speakers are referenced alphabetically as well as by state, market segments and topics.

For more information on the Speakers’ Bureau Directory, contact the 50+ Housing Council at 800-368-5242 x8220 or 50plushousingcouncil@nahb.com. [Return to top]