50+ Housing e-Source - 12/30/2009 (Plain Text Version)Pat Kelley View Graphical Version | Subscribe
to NAHB Publications | Email our
Editor... In this issue: Snapshot: Los Angeles MSA
Greater Los Angeles Age 55+ Housing Summary Opportunities for a variety of age 55+ housing models are constrained by the area’s land scarcity. Master-planned 55+ active adult developments are nonexistent. Age 55+ moderate, market-rate and subsidized multi-unit housing, plus service-enriched housing prevails. Some of the area’s general occupancy multi-unit properties have a large proportion of residents aged 55+, but are not geared specifically to any one age group. Map — Los Angeles County
Population Change
Between 2000 & 2012, the 55-64 age cohort is projected to increase in size from 7% to 10% of the total population. The population aged 65+ is projected to increase from 10% to nearly 12% of the total population. In contrast, the 35-54 age group is projected to decrease in number, but is still sizable and a large proportion of the total population. Diversity and Ethnicity Age 65+
All Ages
Minorities comprise nearly 70% of L. A. County's population. The Hispanic population — the largest minority — is projected to increase in the next 5 years. Many older, first-generation immigrants are part of a supportive extended family. Households — Growth in Numbers
Median Household Income by Age Group
Source: Claritas, Inc. November 2009 Annual Income Breakdown by Income Band and Age Groups 55+
Source: Claritas, Inc., November 2009 Unemployment Rate
L. A. County’s major employment sectors are aerospace, motion picture/TV, international trade, and tourism. Unemployment increased in these, plus most other sectors, except for health care services and few other sectors.
Population and Migration
Since the late 1980s, there has been a domestic outmigration, although it is decreasing. Housing that's too expensive, lengthy commuting distances, and traffic congestion prompt outmigration. An undocumented number of age 55+ residents leave the Los Angeles MSA once in retirement. Median Home Prices
Home prices in reasonable commuting distance typically cost significantly more than the area’s median price. Affordability is a major problem for many. Property taxes often keep many aged 55+ in their current homes, because that tax is based on purchase price rather than current market value. Those who bought homes long ago benefit. L.A. County’s median home price is higher than in surrounding counties.
Los Angeles County Residential Permits
These are permits issued for new single family and multifamily units.
Age 55+ Housing Developments Age 55+ master planned developments consisting of single family homes and attached homes (townhomes) are nonexistent. L. A. County’s high cost of land, as well as land scarcity, constrain and limit opportunity. Multi-unit mid- and high-rise condominium or cooperative buildings specifically for those aged 55 and older also are nonexistent. However, there are 55+ multi-unit rental buildings. These are geared primarily to those with moderate incomes. There are a limited number of market-rate 55+ communities. The nearest master planned developments to L. A. County are at least a two-hour drive away in coastal Orange County and inland Riverside County. They attract L. A. County residents. However, the developments are perceived as destinations, since individuals must relocate. According to Rita Lamkin of Rita Lamkin & Associates in Orange County, there are two types of age 55+ destination buyers from L. A. County: coastal and inland. Coastal buyers want proximity to the ocean but not necessarily an ocean view. These buyers consider themselves coastal when they benefit from the coastal air even if the ocean is 10 miles away. Buyers who prefer inland developments, such as those in Riverside County, typically can find less expensive developments compared to those in the ocean coastal area. Many inland developments are in Riverside County’s Hemet and Palm Springs areas. According to the L. A. County Planning Office, the county has no proposed master planned, age 55+ developments with single family homes, townhomes and condominiums. Burbank Senior Artists Colony exemplifies the type of rental housing in L. A. County geared strictly to those aged 55 and older. It is relatively affordable. But in many ways, this particular property is unique. It is designed to attract a specific niche — those interested in the arts: painting, theater, music. The common areas are a showcase for people to undertake their work and display their talent.
Built in 2005, this five-story rental property is located north of L. A. City in the city of Burbank. Common areas include two large art studios, display galleries, a performance theater, studio for digital video editing equipment, and music playing areas. Many “funky” and not-so-funky paintings and sculptures are displayed throughout the building and outside. Other common areas include an outdoor swimming pool and exercise area. The property is ideally located within a block — an easy walk — from downtown Burbank, which is an architecturally pleasing village of small shops and restaurants plus midrise apartment buildings. This property has 141 units, of which 113 are one-bedroom units and 28 are two-bedroom, two-bath units. There are 49 units with washer/dryer hook-ups. Rents range from $1,700 to $1,960 for one-bedroom units of 700 sq. ft. and $2,200 to $2,600 for two-bedroom units of 900 sq. ft. The décor and unit features are modest. Thirty percent of the units (42 units) are affordable under the Low-Income Housing Tax Credit Program. These rents are less than $700. The property is managed by Legacy Partners and was built by Meta Housing Corporation. Service Enriched L. A. County has many service-enriched properties targeting moderate to upper income households. The latest to open is Belmont Village, located in Los Angeles’ upscale Westwood neighborhood on fashionable Wilshire Boulevard. Opening in August, 2009, Belmont Village has 140 units: 54 for independent living, 60 for assisted living and 26 for dementia care. The 5-story structure is architecturally pleasing. Rents range from $4,600 to $7,800 for one- and two-bedroom units in independent living, $5,575 to $11,950 for studios, one- and two-bedroom units in assisted living, and $7,300 to $13,350 for studios to two-bedroom units for those needing enhanced personal care and those needing significant hands-on assistance, and $5,000 to $8,000 for studios in Alzheimer’s/dementia care. There are additional costs for added levels of care, such as medicine management. There also is a nonrefundable community fee.
While fees are relatively high, they are in keeping with the surrounding area. The property is in an area with exceedingly high land costs. Most homes are valued at $1.5 million to $2.5 million and higher. Units range from 500 sq. ft. to 1100 sq. ft. for both independent living and assisted living. There are 16 different floor plans and the larger units are attractive to couples or individuals with a caregiver. Common areas are plentiful, and include a bistro, outdoor swimming pool, fitness center and exercise room. The property is unique in its targeted audiences. It is located next door to a church and built on land formerly owned by that church. It is part of the Westwood neighborhood, and has an association with the UCLA Emeriti Association. These 3 groups — church members, neighborhood members and UCLA faculty — are offered priority admission. Owned and operated by Belmont Village Senior Living, the property is in the lease-up stage. Government Subsidized Affordable Housing A significant proportion of Los Angeles County’s age 55 and older households — at least 30% — are low to low/moderate income and would likely qualify for government subsidized housing. Such housing comprises a significant proportion of all existing age 55+ housing in L. A. County. While many new properties have been built in recent years under the Low-Income Housing Tax Credit Program, a large number were built more than 30 years ago and are undergoing renovations. One such property under renovation is Angeles Plaza, which opened in 1980 in the heart of downtown Los Angeles’ historic and now fashionable Bunker Hill area. It is centered at the edge of new high-rise apartments, condominiums, retail shops, restaurants, and skyscraper office buildings. Angeles Plaza is unique by virtue of its size. There are 1,093 one-bedroom units in five 16- and 17-story towers. The average age of residents is 82, and most have annual income less than $17,000, that is, less than 30% of the area median income. The property offers independent living with support services through an onsite 80,000-sq.ft senior center, which is open to all of L. A.’s downtown residents. Built and managed by Retirement Housing Foundation (RHF), a national nonprofit organization, the company requested and received more than $43 million in financing to refurbish and modernize its units and buildings. According to Richard Washington, RHF’s vice president for operations, the renovation has a great emphasis on creating an energy-efficient property. The units will have new appliances, cabinets, balcony doors, paint, carpets, heat and air conditioning plus other updates. These changes, plus renovations to hallways and common areas, will average $43,000 per unit. Common areas include meeting rooms, a library, dining room, senior center, mini-mart, beauty salon, and the Tom Bradley Center for Health Care, operated by the Samaritan Hospital. Financing stems from tax-exempt bonds and the Low-Income Housing Tax Credit Program, among other sources, and exemplifies the LA area’s commitment to preserving affordable senior housing. The property has a 10-year waiting list, according to Chris Ragan, RHF’s corporate director of public relations. Forecast for Age 55+ Housing In L. A. County, many of those aged 55+ will continue to live in condos and rentals that attract all age groups, but which have a significant number of older people. Known as natural occurring retirement communities (NORCS), these properties exist primarily in L. A. County’s older urban cores — West L. A. City, Beverly Hills, Marina Del Rey, Century City, Santa Monica, and parts of Long Beach. There is significant demand for housing geared those aged 55 and older at all income groups. Among L. A. County’s 1.1 million households aged 55 and older, one-third or 38% (423,773 Households) have annual income of less than $35,000 and would qualify for subsidized or moderate income housing. At the other end of the income spectrum, 34% (376,266 households) would likely to be able to afford upper-moderate to upscale housing. In the middle are 28% of the age 55+ households — or 28% of this age group — with annual income from $35,000 to $74,000. The county’s lack of easy access to public transportation, the many hilly neighborhoods, the steady traffic congestion, and the area’s numerous hard-to-drive high-speed freeways push demand for housing geared to those aged 55 and older. Developments built with universal design features in walkable distance to shopping and activities would definitely generate demand. Evelyn Howard, President of Howard & Associates, is a nationally recognized expert in market
For more information or to contact us directly, please visit www.NAHB.org | ©2009, National Association of Home Builders |