FEATURE The New “Active Adult” Housing by Wayne A. Lemmon Housing developments target- Age 55 has become special in the plan- households continue to live where they ed for the age-55-and-over slice ning profession and homebuilding indus- are, or might they prefer something else? try. This is a threshold age that has been of the demographic pie are going NEW HOUSING FOR ACTIVE ADULTS broadly adopted as defining “active adult” upscale. How will your community Many of the country’s homebuilders respond to the new opportunities and living. Households in this age bracket are are betting on the “something else.” Until challenges these projects bring to the typically not yet old enough to retire, but fairly recently, the only choices available planning process? are usually beyond the demands of child- raising. Housing that is specifically target- to most mature households were to stay THE NEW UPSCALE SENIORS ed to age-55 and older is not expected to in-place; to find an or small In the late 1940s, America was feeling accommodate school-age children, which, condo somewhere in their community; or good. The soldiers and sailors had in turn, has important implications for to move to a , often returned from war, and were finding old planning public facilities and municipal in the “Sunbelt.” Long-distance moves and new sweethearts. Wartime industry budgets. came with some drawbacks, however. was converting to a vast domestic produc- But what is particularly different about Children and grandchildren would be far tion machine. And without too much fur- this generation is its economic stature. away and might only be seen once a year ther ado, the baby boom was launched. Overall, the Boomer generation has instead of once a week. And, in general, The new Boomer generation would grow amassed an unprecedented level of per- the “retirement communities” attracted a 1 up with television, desktop computers, sonal affluence. In addition to incomes, much older profile, age 70 and up, which and rapidly expanding new suburbs. They assets have also been growing. For the last was not really appealing to pre-retirees would pioneer new inventions, new ways seven years, the housing market has been aged 60 and under. of doing business, and whole new indus- very strong, and in some markets in just This picture has changed dramatically tries, with increased career advancement the past four years, home values have in recent years. Across the country, what and higher levels of earnings for the great appreciated by a third or more. If an older has been termed “active adult” housing is majority. And now, the oldest members of household has been in the same for now being offered to empty-nest house- this generation are reaching a very special a long time, they also may have little or no holds prior to retirement. Homebuilders age – 55 years old. remaining mortgage debt. have begun offering a whole new menu of Putting these factors plans and styles designed to appeal to the together, we see an interesting new, upscale mature market. The appeal is picture. We have mature per- sons who are still in generally to the pre-retiree or semi-retiree. House good health and have active plans and community plans emphasize lifestyles. Their often active recreation and entertainment, but command a high price on the also feature dens and computer hook-ups. market, with little debt to pay Master bedroom suites occupy a major off. Moreover, with children portion of the ground floor, but upstairs no longer at home, there are bedrooms are provided for visiting chil- frequently empty bedrooms. dren, grandchildren, and other guests. For many, the upkeep on the And above all, the homes reflect the style house has also become a and higher income of many in the Baby burden or simply a nuisance Boom generation. with which they no longer In addition to the house, the commu- want to deal. Will these nity as a whole is designed to be attractive

1 U.S. Census Bureau data documents the rapid income growth for households headed by per- sons aged 55 to 64, in part reflecting the baby boomers now entering that age bracket. Using adjusted 2001 dollars, the mean income for this group has increased from $41,741 in 1970, to $47,824 in 1980, $54,448 in 1990, and $63,952 in 2000. This represents an increase of 53% (again, in adjusted dollars) over this 30 year period, and a 17% increase in just the most recent ten year period. U.S. Census Bureau, Historical Income Tables - Households. Table H-10.

PLANNING COMMISSIONERS JOURNAL / NUMBER 51 / SUMMER 2003

1 Architectural details and enhanced landscaping contribute to an upscale image for what is still a moderately sized house, closely spaced to its neighbor.

structures, it is the associa- tion that is responsible for mowing the lawns, plowing the snow, and even main- taining the exteriors of the individual units. Each home has a delineated exteri- or area of “restricted use” which looks and feels like a typical yard area for a detached home. Because of the maintenance impli- cations, condominium ownership format for detached houses can be very attractive for active adult communities. Active adult communities have been embraced by jurisdictions across the country as a “good” form of residential development. In some localities, develop- ers know that adult communities are the only kind of development for which they can get approvals. The reasons for this are three-fold: 1. Upscale adult housing is very attrac- tive fiscally for the municipality. Private This relatively small “media room” is in place of The dining room may command the central the larger “family room” found in other new hous- location in the house with a cathedral loft ceiling. communities of this type add no new ing. But note the wine cabinet, the granite coun- Entertaining family and guests is often the focal enrollment to schools. The upscale price tertop wet-bar, and marble fireplace. activity in active adult housing. positioning adds to the tax base and annu- al tax revenues, but demands very little of mature market develop- the town treasury, particularly if street ments. One is the “com- maintenance (and, in some localities, munity amenities” pack- even water and sewer services) are provid- age. Family-oriented com- ed by the private community. munities may offer some 2. Socially, families are able to stay tot lots and an outdoor together if there is an attractive alternative swimming pool. Larger to grandma and grandpa moving out of adult-oriented communi- the area. Long-time community leaders ties, however, frequently remain with the community. Of course, offer very large, full fea- there can always be too much of a good This community facilities is about 55,000 square feet in tured community facilities. thing. Localities that have weighted their size, and includes an indoor pool, a ballroom with a catering demographics towards older age groups kitchen, and many special purpose rooms for exercise, hobbies, and The other key factor for meetings. the mature market is creat- can, in the long term, create a constituen- ing a low maintenance or cy that may not identify with schools or for the active adult market. While this maintenance-free environment. This is social need agendas. often includes the kind of nature walk often achieved by establishing the com- 3. The typical active adult development trails and enhanced landscaping also munity as a condominium, rather than by features relatively small lots or, in condo- found in many family-oriented communi- selling houses on fee-simple lots. Even if minium situations, closely spaced ties, two other factors come into play for the homes are single-family de-tached continued on next page

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2 The New “Active Adult” Housing association, but may have to come to grips mum lot size requirements. In some areas, continued from previous page with not having a back yard in which to however, this creates further problems as dwelling units. Compared to traditional plant a vegetable garden or do what they regulations designed around multifamily single-family detached subdivisions, please. Similarly, while local governments condominium fit poorly when active adult communities leave more open may embrace not having to plow the applied to single family detached homes.3 space for a given number of dwellings. new streets or extend new sewer lines, In other areas, these developments they may feel uneasy about the condo- make use of “planned unit development” ISSUES FOR PLANNERS minium association functioning in ways or “planned residential development” pro- Active adult communities are not sim- that resemble a separate community visions of the local ordinance, ply subdivisions with homes owned by government.2 which allow more flexibility in site layout empty nesters. They are in fact a different and design, and also permit the clustering form of development that carries some of housing units on certain portions of the CTIVE ADULT important implications and issues for A site. Just as often, however, communities planners and land use regulators: COMMUNITIES ARE NOT that have favored large lot development Age-Restricted vs. Age-Oriented SIMPLY SUBDIVISIONS WITH have resisted cluster-style zoning. HOMES OWNED BY EMPTY Age-restricted communities require SUMMING UP: imposition of a restriction on the deed NESTERS. THEY ARE IN Demographic trends underlie an record for the property (or in the condo- FACT A DIFFERENT FORM increasing demand for “active adult” minium declaration or articles of incorpo- OF DEVELOPMENT housing designed to meet the needs of ration) that the home can only be sold to a mature, childless households, age 55 and household meeting the stated age require- older. This can be a very attractive form of ment. Age-oriented communities do not development for local communities. It is, have such restrictions and, in theory, REGULATORY ROADBLOCKS however, a specialized type of housing homes can be sold or resold to anyone. For the fiscal reasons noted earlier, However, developments with the design with a unique combination of opportuni- active adult communities can be quite ties and constraints. Local zoning laws, and planning features (including small attractive to upscale, low-density subur- common-area yards) associated with site planning standards, and approval pro- ban jurisdictions. However, these are fre- cedures may have to be updated if your active adults are not likely to attract fami- quently the very same jurisdictions that lies with children. community is to participate in this new have implemented minimum lot size wave of housing development. ◆ Age-oriented communities are thus restrictions or other zoning regulations relying on the market response to their that prevent higher density development. Wayne Lemmon is a real design to achieve their mature market ori- There is a presumption behind such regu- estate market economist with entation. Some municipalities, however, lations that higher density equates to a degree in architecture from want these communities to adhere to spe- lower values. Since active adult communi- Cornell University, and from the City cific age restrictions. Interestingly, most ties are typically higher density / higher College of New York. He is developers do not like age restrictions. value propositions, they may be at odds Director of Market Research They would rather not prevent a viable with restrictive zoning. prospect (such as a 52-year-old childless for Baker Residential, a large For example, setback and minimum homebuilder operating from the Philadelphia to couple) from buying their product. More- lot size requirements can prevent the type over, they believe that the features of the the Hartford metropolitan areas. Lemmon is also a of active adult housing described in this development will be effective in focusing member of the PCJ’s Editorial Advisory Board, and article. In addition to the maintenance authored “The Anti-Sprawl Mantra” in PCJ #37 the market on 55-and-overs. Also, some benefits for homeowners, one reason (Winter 2000). potential buyers may be concerned as to developers have used the condominium the resale potential of their house if they form of development (instead of selling 3 In some cases, dimensional requirements contained can’t sell it to anyone who can pay the individual houses on fee simple lots) is to in local zoning or regulations, which may price. apply to individual lots, do not apply to condominium circumvent municipal setback and mini- developments. Some localities also have specific regu- Detached lations applicable to condominium developments, vs. Subdivisions 2 While it is beyond the scope of this article to discuss such as parking and bedroom count standards, that Developing a community of detached the growing impacts of private community associa- apply poorly to single-family detached architecture. tions, one should note their rapidly increasing num- homes as condominiums can require bers. In 1970, under 3% of U.S. housing units were some mental adjustments on the part of part of a community association (including condo- both buyers and local governments. miniums, cooperatives, and planned communities). Homebuyers may readily embrace the By 1998, this had mushroomed to nearly 15% of all housing units. Condominiums represent over 30% of idea of handing off their lawn mowing community associations. Community Association Fact- and maintenance to the condo book (Community Associations Institute 1999).

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