Cecily O'Connor
RedwoodAge.com
Most older adults plan to stay put when they retire, but those seeking a change will likely settle into single-family abodes nestled near loved ones.
One in five adults over 50 plans to move in the next five years, according to a fourth-annual housing survey of 1,000 men and women by ERA Real Estate. Three out of four say it is important to be near their family when considering their next move.
Of the 20 percent considering a move, about two-thirds would most likely migrate to a single-family home, which is consistent with a recent study by the Joint Center for Housing Studies at Harvard University that found few baby boomers wanted to downsize to smaller nests.
At the same time, active adult communities are becoming more attractive, although they are still not as favored as single-family homes or condos. Six percent of adults said they were considering living in an active adult community, up from 2 percent last year.
There are more than 2,200 so-called continuing care communities, which range in form from campus-like complexes to luxury high-rises. That's nearly 10 times the number than existed in the 1980s. Many new urban facilities offer amenities commonly found in hotels.
There are about 30 urban facilities in urban areas today and another 15 are in development to meet rising demand, including the riverfront Mirabella project in Portland, Ore.
People who choose to live in urban highrises want to stay connected to the energy of the city, said Tom Becker, CEO of Pacific Retirement Servies Inc., the not-for-profit corporation building the Mirabella.
"Sometimes a high-rise building can give you easy access to services, particularly as you age," he said. "It brings the world a lot closer to you."
Similar to other types of housing, the need to settle into digs near family and friends is paramount for 70 percent of adults considering such a community.
"We see people migrate to our communities because they have children and grandchildren in the cities and neighborhoods around us," said Becker.
Typical residents are community-oriented, healthy, prize independence, and have high standards, both for services and the building itself. They work out in gyms, but they also have access to support services if and when they want them.
"People generally think they’re a lot younger than they really are," he said. "We’re designing buildings that could appeal to an empty nester – someone in their 50s. It’s nice and spacious. We’re really focused on a package and program on that person who’s above the baby boomer group. But boomers are looking at a lot of the same things."
Volatile Market
In the backdrop of boomers' dream dwelling plans is a volatile housing market.
There's been talk of a cut in the federal funds rate, which would prompt banks
to reduce lending rates charged to consumers. And a lower funds rate - which has
stood at 5.25 percent for over a year - would be welcome news for older adults
seeking less expensive financing for a larger home. About one-quarter of the
survey respondents said they would buy a new home to upsize, compared with 15
percent last year.
While a lower interest rate could have positive implications, not all adults are
banking on such a reduction. About 11 percent said they would consider
purchasing a condo, townhouse or apartment, which are generally popular options
among buyers who can't afford larger homes.
Boomers have many other housing options of which they may avail themselves. Some adults are now considering co-housing arrangements that are being set up in a variety of U.S. cities. Co-housing enables boomers to own their own homes within a given neighborhood or condominium complex, and benefit from shared land, community gardens, workshop areas and a community room for dining.
While the latest survey didn't ask respondents about co-housing, at least one trade group that represents co-housing communities estimates more boomers will move in during the next decade, thanks partly to increased development.
No matter the type of dwelling, Las Vegas, Austin, Atlanta and Dallas are among the U.S. cities that are expected to undergo rapid "senior growth," due to boomers on the move, as well as those aging in place, according to the Brookings Institution, a nonpartisan research group. Many of these cities have been ramping up a wide range of services, such as quality health care, to meet the expected wave of demand.
