During the Great Depression Americans were content purchasing their homes in the 1940s and '50s completed by their one-car garages, Formica countertops and vinyl floors.
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Equipped with incomparable wealth, the Baby Boomers are much pickier with their demands for 10-foot ceilings, high-end appliances, a clubhouse concierge and valet service. Companies that can cater to that lifestyle are enjoying high sales, even as the housing downturn lingers.
One prominent Philadelphia-based builder of communities for home buyers 55 and older was quoted as saying, "Builders who offer that are doing very well,” "Others are falling behind, and they're not able to compete." The prediction is that someone 55 or older will head 40 percent of all U.S. households by 2012.
Statistics say that Baby Boomers are responsible for a majority of the nation's wealth which is estimated at $2.8 trillion or about 36 percent of total household income.
Typically the starting prices in gated retirement communities start around $400,000. A majority of these residents are still working full time and say they prefer a community where they have access to plenty of services and activities.
Communities or developments that cater to needs of the 55 and over include activities like ballroom dance and conversational Spanish. You may also see things like movies, parties, club meetings, card games, celebrity appearances, health fairs and financial lectures in communal areas such as a clubhouse with space to accommodate everyone.
One of the larger luxury developers, Toll Brothers Inc. reported last month that 30 percent of customers canceled pending contracts within the first quarter but according to Traditions of America's builders of active adult housing communities are seeing a less than a 2 percent cancellation.
It looks as if South Florida's demographics are ripe for more adult housing communities but a lack of land, particularly in the Broward area could hamper their growth.
Contributed by
MLR Realty
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