A New Direction For Senior Housing

Home builders are currently facing a rapidly emergingHOA's will often maintain a homeowner's yard, roof,
demographic that has forced the housing industry toand home exterior, while also providing for utilities,
begin shifting away from traditional forms of realsecurity and common areas that can include pools,
estate development into methods that caterclubhouses, golf courses, tennis courts, walking trails
specifically to the needs of seniors. According to theand community activities.
United States Census Bureau, 100 million U.S. citizens,Other developments address many seniors' desire to
or a third of the country's population, will be 50 yearslive near people with similar interests at a comparable
or older by the year 2010. Many of these seniors andstage in life by limiting homeownership to those over
retiring Baby Boomers are now starting to transitiona certain age. These retirement communities also
from larger homes in which they have resided foroften offer a neighborhood grocery store, a
years into more manageable accommodations.pharmacy, restaurants, and more community
Consequently, real estate developers are currentlyinvolvement and activities that can help with the
scrambling to provide housing that meets the needeventual transition to assisted-living facilities. Seniors
of the Baby Boomer generation.have become increasingly attracted to communities
Home builders are not only adjusting due to thethat offer the convenience, mobility, amenities and
massive size of the senior population on the horizon,freedom to maintain rich and active lifestyles as
but also because of the significant purchasing poweropposed to the institutional and more sterile
of this blossoming demographic. The youngerenvironments provided by the more traditional
generations that the housing industry has focused itsmodels of senior housing facilities.
efforts on in recent years have been relatively poorIn terms of home features, a recent survey
in saving their earnings and liberal with financing theirconducted by the Internet Home Alliance Research
homes. Conversely, seniors generally maintain strictCouncil revealed that 63% of seniors have home
personal finance principals whereby wages are savedoffices in their new homes, while an amazing 70%
and any debt is paid down as quickly as possible.have broadband internet access at home. The days
Therefore, while many younger homeowners areof studio apartment-style senior living are on the
using the bulk of their earnings to pay heavilywane as the vast majority of our aging population is
leveraged home mortgages, many Baby Boomers arelooking to the increased square footage offered in
preparing to utilize their savings and the equity in theirhomes with at least two bedrooms and full-sized
current homes to purchase the residences in whichkitchens. These findings clearly evidence the desire of
they plan to retire.seniors to maintain their connection with the world
The housing industry is also embracing a shift awayand further prolong their preferred lifestyles.
from the traditional assisted-living facilities intoIt is clear that seniors and Baby Boomers are
communities that offer seniors more independenceexpecting longer lives and better health and mobility
and freedom. Boomers are frequently relocating intothan previous generations. As a result, the housing
planned-unit developments (PUDs) and gatedindustry will need to continue to adapt in order to
communities where regular dues are paid to aprovide these very important segments of the
governing Homeowner's Association (HOA) thatpopulation with housing that will foster the
provides for many of the amenities that they require.environments and lifestyles these groups require.