50+ Housing e-Source - 01/16/2009 (Plain Text Version)Joanne Theunissen View Graphical Version | Subscribe
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Editor... In this issue: Repositioning for the Future: 50+ Housing Strategies for SuccessFor 2009 and beyond, the Houston market, particularly for active adult communities, will be redefining its housing needs and approach to design. With retirement funds and other assets severely diminished in the past year, boomers are reevaluating short- and long-term personal and financial needs. Health, family, friends, convenience and financial stability move to the forefront of their lifestyle choices. The quest for quality of life and value has become an endeavor. The diversity of boomers offers substantial opportunities for a variety of active adult communities and homes types to meet equally diverse needs and demands. Careful evaluation, analysis and planning are more important than ever to make the financial model work and to provide efficient designs offering market-responsive lifestyle choices and alternatives. Those builders and marketers who are innovative will create new profitable niches in the broader market. The New Financial Model In prior housing downturns, prudent companies acquired land and approvals, positioning themselves for the upturn. During this recession, this has not happened due to escalated land costs coupled with restricted credit. Projects have been put on hold and some even returned to lenders. High-priced designs once viable due to absorption rates and general market fever are no longer relevant. In addition, developers do not have the luxury of beginning new approval processes or major product redesign that may delay construction starts in a recovering market. The industry needs to start working now on redefining plans within the constraints of existing site plan approvals and find ways to reduce costs. Value engineering will be necessary to combat high construction and land costs while still providing lower home prices. The emphasis should be placed on “value.” Creating substantive, cost-effective value will positively position builders in a competitive market. Some developments may require repositioning, a process examining the current planning approval, site constraints and building program to determine what options are available for the financial model and marketing opportunities. The compatibility of building and site is ever more critical. Going forward, coordination of plan and product requires creative ideas, re-evaluation of design and engineering decisions, and unstinting team collaboration. Design and Efficiency Active adult communities have set the precedent for a year-round resort lifestyle. During the next development cycle, this is not likely to change fundamentally, yet the new economic realities will encourage downsizing to provide greater affordability. Downsizing of plan does not need to be a negative. The keys to making smaller homes feel bigger while working smarter are simple to state: efficiency and open floor plans providing appropriate spaces for all living functions. Every space is a design opportunity. Efficient building and home plans can reduce the building area substantially by removing excess circulation or reducing common areas. For example, a foyer can be small if it is a defined space opening up to a larger room with views through the home. To analyze efficiency, differentiate with color the usable space vs. circulation in plan. Excess circulation can sometimes be reduced simply by relocating a door or flipping the room. Adaptable, flexible and multifunctional rooms offer different lifestyle choices, living arrangements and alternatives which appeal to a broader range of buyers and potentially may reduce both the size and number of model homes offered. For example, a particular couple may not want redundant eating areas and may prefer island or countertop seating. The square footage allocated to the dining or breakfast room therefore may be adapted for a music room, office and/or guest bedroom. Efficient, compact solutions are shallow pantry or linen closets which maximize storage and computer niches and built- in cabinetry which can make a room multifunctional. If introduced early in design, incorporating simple retrofit for these choices is relatively straightforward and cost-effective. To facilitate visualization for the potential buyer, the variety of choices and living arrangements can be demonstrated by illustrating different floor plans and furniture arrangements. The design including structural and mechanical systems should permit flexibility and modification for lifestyle choices and future renovations as needs or interests change. The principles of universal design accommodating aging-in-place are an example. Create a Niche Location will remain a key factor for active adult communities. Transportation costs, proximity to family and friends, and access to community services and entertainment centers will drive the buying decision. Mixed-used and urban centers that encourage walking and reduce dependency on the automobile while also providing easy access to mass transportation and services offer these opportunities. Multi-generational communities with active adult clusters dispersed among market-rate neighborhoods also may create a new lifestyle option. With the recognition of the need to conserve energy, resources and maintenance costs, sustainable and “green” features provide a positive and marketable legacy for future generations. Sustainability goals incorporated early in the site planning process can lead to an affordable, community-wide implementation, while Energy Star appliances, fiber cement siding, increased insulation and high performance doors and windows are some of the readily accessible products. Offering individual lifestyle choices to a home can be cost-effective if introduced in the design process. Options should work with the structure and allow for ease of construction such as structural headers and columns allowing the removal or infill of walls and doors. Every lifestyle choice should carry a perceived and visible value. A material and color change or adding French doors and interior transoms allowing light to filter through rooms will make the home appear larger. Porches and bay windows at the front of a home increase street presence. The opportunities to create value are only limited by the imagination. In Summary The development industry thrived for many years. Financing was affordable and readily available for developer and buyer. Active adult and senior living communities in particular were blessed with overwhelming market acceptance. As ours is a cyclical business, many expect these days to eventually return. In the meantime, however, we need to re-think our plans both broadly and in detail. Bigger is not always better. As developers and industry leaders are challenged with corporate efficiency, agility and cost effectiveness, the new market reality can be an opportunity for the immediate and long-term sustainable future. A future better for all. Amy Martino, AIA, CAASH, is the principle of Building Site Synergy, which focuses on repositioning sites, value engineering and green sustainable strategies and approaches to development challenges. Martino has focused her 20-year career on the master planning and design of high-density multifamily communities. Her substantial portfolio includes the design and documentation of complex urban and suburban infill, redevelopment and waterfront communities and 50+ communities. Martino excels at defining opportunities and constraints, creative solutions for challenging sites and building consensus on complex mixed-use, active adult and market rate communities. She is a frequent presenter to national and regional forums, including NAHB’s Building for Boomers & Beyond: 50+ Housing Symposium. She can be reached at AMartino@BuildingSiteSynergy.com or 410-916-9829. For more information or to contact us directly, please visit www.NAHB.org | ©2009, National Association of Home Builders |