50+ Market Growing, Changing in Southeastern Pennsylvania  | | The Liberty Bell |
Southeastern Pennsylvania has long been a hotbed for the “traditional” retirement market. But that is beginning to change, according to area experts. The 50+ market, they say, has become younger, more active and more lifestyle-oriented. “Philadelphia has always been associated with assisted living, continuing care retirement communities (CCRCs) and other forms of service-enriched seniors housing,” said Barbara Kleger, of KD Partners, LLC and the chair of the newly-formed PennDel 50+ Housing Council. “But the market has progressively gotten a lot younger. The active adult industry is alive and well across the region.” Susan Brecht, of Brecht Associates, Inc., a nationally recognized market research firm based in Philadelphia, said that empty nesters deserve much of the credit. Unlike previous generations, they are more likely to move to urban areas in search of cultural activities, entertainment and all that cities have to offer. “Philadelphia isn’t considered a retirement destination, but it has a lot to offer,” Brecht said. “The cultural attractions, restaurants and shopping are a big lure, and many buyers want to live in a mixed-age environment. You are more likely to find that in an urban setting.” Brecht, Kleger and other members of the council, which spans seven home builders associations across eastern Pennsylvania and Delaware, discussed how the boomer generation is transforming their region’s 50+ housing industry during a kickoff meeting of the council at Valley Forge, Pa. last month. Since many boomers continue to work, access to employment opportunities and shorter commutes to the job remain high on their priority lists. But the boomers and others in the 50+ market are also seeking lifestyle. They want concierge and business services as well as pet walking and laundry/dry cleaning services. The region has already experienced an influx of dozens of active adult communities, all built during the last 10 years and all built near the region’s urban core. Another 19 active adult communities are under construction or in the planning stages in Montgomery, Chester and the Delaware counties surrounding Philadelphia. Brecht said these communities could add more than 3,000 single-family homes, condominiums and townhouses to the housing supply when they are completed. And she expects this growth in active adult communities to continue. Robert Fuller, vice president of real estate development for Toll Brothers in Horsham, Pa., is planning several active adult communities in the region. “Pennsylvania has one of the largest senior populations in the country,” Fuller said. “Builders like Toll Brothers will continue to build active adult communities to meet market demand.” With all this demand and construction in the region, Brecht said that housing there still remains affordable for many buyers. The cost for a single-family home of 1,300 to 2,300 square feet within an active adult community, for example, ranges from the upper $300,000s to the mid-$400,000s. Brecht also pointed out that the 50+ buyer was looking for more varied housing choices, such as multi-story condominiums and active adult communities that offer a mix of single-family and attached units. The condominium communities, which can resemble contemporary service-enriched seniors housing from the outside, often have a clubhouse as part of the main building. Prices for this type of housing vary. Condominiums in a community in nearby central New Jersey were priced from the low $200,000s to more than $1 million. “The market is becoming a lot more competitive, but there are plenty of opportunities for builders who do their homework and know their marketplace and who listen to their buyers,” said Kleger. “Builders also have to be patient and persistent, and also have to keep up with what’s hot,” she added while noting that consumers are wielding more bargaining power than ever. “The best thing you can do is to find your niche,” Kleger continued. “Builders need to show buyers what makes them better and different.” | 
