50+ Housing e-Source - 03/25/2009 (Plain Text Version)

Pat Kelley
50+ Housing Council Chair

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In this issue:
Symposium Preview — Great Sessions, Great Price
Fees Reduced to Address Challenging Market; One-Day Pass Available
Thinking Like a Consumer, Acting Like a Retailer
See the Best in 50+ Housing Design and Marketing at the Symposium
Developing Active Adult Communities: A New Model for the Baby Boom Generation
Take Advantage of NAHB’s Discounts and Get Your CAASH Designation Today!
Philadelphia – Ground Zero for the Older Adult Market

Philadelphia – Ground Zero for the Older Adult Market

One of the expert speakers on the program at the Building for Boomers and Beyond: 50+ Housing Symposium ^SM is Susan B. Brecht, president of Brecht Associates, Inc., Philadelphia. Brecht does market feasibility studies for all forms of 50+ and seniors housing, including continuing care retirement communities (CCRCs) and assisted living communities. The editors of e/source interviewed Brecht about the thriving Philadelphia seniors housing market, and got a sample of the sort of great information that will be presented at the Symposium.

Q: Given the state of the national economy, how is the Philadelphia market for 50+ and seniors housing still doing well?

A: This is a very, very deep market of older people. We have a large selection of CCRCs – a larger concentration of that sort of community than anywhere else in the country. People who live in the Philadelphia area have the expectation that when they reach their older years, they will move. It’s a very common situation here. We have nearly 90 CCRCs in the metro area.

Q: What’s happening on the active adult side of the market?

A: There also is a lot of active adult development going on in this area now – really a ton of it. Our CCRC clients are mindful of that growing trend, and realize they now have to compete for the active adult segment – a group that used to move directly into CCRCs. The CCRC developers now are beginning to offer independent living options as well. There aren’t so many CCRCs offering cottages – most are building multi-story spaces. Someone who wants a 2,400-sq.ft. space won’t find that at a CCRC. But in nearby Lancaster County, almost all the CCRCs have both cottages and apartments.

A: Who is moving into the active adult communities?

Q: 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. 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.

Q: How badly has the financial meltdown affected the Philadelphia market?

A: We have not suffered to the same extent as other markets. We didn’t have the extreme highs, and we haven’t had the sharp drops either. We haven’t lost as much value in our housing market as many other cities have. We have a healthy, very diverse economy, and that protects us from wild economic swings. And the fact that our appreciation rate was somewhat slower meant that even in recent years, residents got a lot more for their money in a home purchase.

Q: Does Philadelphia have a more stable market because the city’s demographics are significantly different from other metropolitan areas?

A: Philadelphia is an extremely densely populated metro area – and a huge part of the population is in that 50+ group. People stay here. We don’t leave – we age in place.

It’s an older city, and the post-World War II suburbs – those that are close-in – have been densely developed for a long time. The closest suburbs – Delaware Counties and Montgomery counties – have been built up for years. And in the next group – Chester and Bucks counties – the only really large scale development is at the outside edges. But opportunities remain. Within Montgomery, Chester and Delaware counties, more than 19 active adult communities are either being built or are in the planning stages in their respective townships. That could add more than 3,000 single-family homes, condominiums and town homes to the housing supply.

Since many 50+ 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. Builders are targeting urban locations such as Chicago, Detroit and now Philadelphia for active adult communities.

And I would be remiss if I didn’t mention that the downtown has terrific urban neighborhoods with restaurants, the arts, and wonderful housing stock. When people come to the Symposium, they should walk around Rittenhouse Square, Society Hill, and the Old City – very walkable, and fun.

To see some of the Philadelphia area's active adult communities, register for the Active Adult Community property tour on Monday, April 27, in addition to the conference itself.