50+ Housing e-Source - 05/31/2006 (Plain Text Version)Norman Cohen View Graphical Version | Subscribe
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Editor... In this issue: Boomers Are Changing the Way Builders Do BusinessThe boomer generation is shaking up the housing industry, and builders are responding with big changes, say experts with the National Association of Home Builders’ 50+ Housing Council. Speaking at Building for Boomers & Beyond: 50+ Housing Symposium 2006 in Phoenix, Ariz., builders and architects say that in order to attract boomer buyers, the industry is discarding old notions about the “retirement lifestyle” and allowing buyers to create their own distinct communities. “We used to sell to retirees, but now we can’t find them — they don’t exist anymore!” says Jim Daniel, vice president of sales for Robson Communities’ PebbleCreek Resort Community in Buckeye, Ariz. Boomers are staying in the workforce longer and starting new careers later in life. Author and generations expert Neil Howe, who gave the Symposium’s keynote address, says that builders should do away with language about “retirement,” and instead stress that their products allow buyers to be engaged and employed. Unlike the generations before them, boomers don’t want to “get away from it all,” says Howe. They want to be near cultural and spiritual hubs that keep them connected with community and culture and involved in lifelong learning at local universities. Architect Manny Gonzalez, of KTGY Group in Santa Monica, Calif., agrees and notes that more and more 55+ home buyers are moving to revitalized downtown areas and city centers. “The active adult market is a great fit for downtown,” he says, since these home buyers want to be close to arts, entertainment, and work. Howe added that because boomers, who make up 37 percent of all homeowners, are retiring at such varied ages, they’re in no hurry to move. In order to draw these buyers in, he says, builders should stress informality and spontaneity—boomers want to discover communities on their own, rather than buy into a planned development. This trend is resulting in NORCs, or “Naturally Occurring Retirement Communities,” where influxes of older residents create unplanned 50+ communities. Technology is also important to boomer home buyers. “They want to be online and high-tech, with media-rich capabilities,” says Howe. Gonzalez notes that in many active adult rental communities, “tech centers” are now called business centers, reflecting the extended employment years of today’s active adults. An influx of builders into the market has pushed active adult developments to step up their amenities, says Robson Communities’ Daniel. “Competition is keen for the active adult dollar,” he says. “Amenities like golf and tennis used to be enough, but now (amenities) have to be about technology and learning.” Fitness and health are still high priorities for boomers. Housing for these buyers should be in natural, “walkable” areas, says Howe. Boomers, who value independence and individualism, are extremely conscious about marketing messages. Howe says that builders should choose subtlety when they market to these buyers. “This is the generation that came up with ‘experience marketing,’” he says. Boomers want housing that provides them with an authentic lifestyle experience, and marketing should allow them to discover that on their own. They will steer clear of traditional, attention-grabbing marketing tools. Howe emphasizes that builders should avoid a “suburban” or cookie-cutter look, as well as ostentatious luxury, and shouldn’t make assumptions about how social boomer residents want to be. “Many boomers probably don’t care about clubhouses,” he adds. Instead, they prefer informal, self-discovered activity and leisure spaces. Building for Boomers & Beyond: 50+ Housing Symposium is an annual education and networking conference for industry professionals who serve the 50+ housing market. This year’s Symposium had over 800 attendees. The 2007 Symposium will be held in Denver, Colo.
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