SNAPSHOT: BOOMERS AND ACTIVE LIVING COMMUNITIES

Note: Boomers are just beginning to embrace active adult communities. That said, they are wide-eyed observers of the choices that are available to their parents, and learning as they go re what their needs/choices will be for themselves ten or fifteen years in regards to retirement communities (offering continuing care) down the road.

At a Glance…

• 50-plus population is the fastest growing segment of the housing market
• Americans age 55 and older bought nearly one-fifth of the 1.1 million new homes sold in 2003
• 52% of boomers between 45 and 54 anticipate making some type of real estate investment, including retirement property, over the next five years.
• Of those 55-64, slightly higher 57% said the same
• More than half of all boomers plan to buy a home specifically for retirement

Single Women

• Single-person households are on the rise in this age range, particularly among women: of the 57 million women in US age 45+, half—25 million—are unmarried. By 2050, there will be 7 million more women than men alive in America. By 2010, 69% of the increase in the population living alone will be among people ages 45-64.
• Single women are the fastest growing segment of homebuyers today, buying one out of every five homes, second only to married couples.

Who Makes the Decision

Quantitative and Qualitative

• Boomer women influence 80% of purchasing decisions for their families
• Women handle 75% of family finances, control half of the private wealth and account for at least $2 trillion in annual consumer spending in the US
• Adult children may be major influencers (esp. if grandchildren are involved) but it’s still the parents’ decision
• The gay market is booming, due to their preference/desire to live in affinity groups

What Instigates Decision to Change One’s Residence?

• Empty nest—taking advantage of “freedom” to have the life one has dreamed of having but couldn’t, due to concerns about school districts, moving kids, etc.
• Crisis (i.e. loss of spouse, divorce)
• Opportunity: wanting to be closer to family, esp. grandchildren
• Wanting to “downsize” responsiblities, i.e. spend less time handling logistics of maintaining one’s own home, simplifying life to have more time to spend on choices, i.e. travel, hobbies, “doing good”, part-time work
• “Destination”—to be closer to cultural center, out in nature, on a golf course, at the beach—whatever is “the dream”, which varies from boomer to boomer, but can be put into logical buckets
• Desire to be among “one’s own”—affinity groups of deaf people, gay men and women, military veterans, university alumni, etc.
• 66% of older boomers would be willing to move for community lifestyle (see above)
• 54% seek warmer climates

What Qualities are Considered?

• Approximation to “the dream”, whatever it is (i.e. walking to great shopping and restaurants, boat moored at front stoop, etc.)
• Safety and security (i.e. gated community)
• Amenities, i.e. spa, jogging paths, wireless internet
• Beauty of housing décor and surroundings
• Ability to accommodate physical changes anticipated for down the road, i.e. wheel chair friendly, no steps, etc.
• Like-minded community, a feeling of being among one’s own (i.e. Beatles piped into public spaces)
• Affordable/fixed costs (however affordable is defined—emphasis on ‘fixed’)
• Good medical facilities and access to top-rate physicians

What Sources Influence the Decision-Making Process?

• Direct knowledge of others who have made the move and have good things to say
• Internet: 71% use Web for research
• Traditional real estate networks
• Competitive review personal visit based on geography/reputation/cost (initiated be ad/brochure and preceded by phone conversation with as highly-positioned a representative as possible)

What Other Third Party Partners Should be Considered?

• Retirement fantasy websites (i.e. the sites that give guidance re retiring in third world countries…)
• Websites such as Eons.com
• Alumni Associations
• Religious and Affinity Groups, i.e. alumni of universities, summer camps

What Spokespeople are Respected?

• Authenticity is most important quality—believable? Really living in the residence environment?
• Someone from the boomer’s age group
• Warning: If you want boomers to move into the community, only show boomers and/or show boomers as the universe around which children and elderly parents turn

The Persona of the “Typical” Boomer: What Marketers Need to Know

Grand Boomers: Legacy

• Boomers with grandchildren—a potent force. Wanting to share life experiences with one’s grandchildren, i.e. having facilities that the grandchildren will remember and want to visit. (Miniature golf? Swimming pools? Crafts huts?)
• Note: 31 per cent of trips taken by boomer households include at least one child or grandchild
• Timeshare industry has boomed tapping into this legacy notion: Marriott’s calls them “GrandBoomers.”

Entitlement

• Boomers have worked hard and think of high quality of living not as a perk but as an entitlement
• Expect to be pampered
• Expect great service and attention i.e. hand-addressed notes
• Notice details: i.e. the brand and cost of furniture in a showcase unit…

Simplicity

• Looking for solutions that will simplify their lives—not complicate things
• Want to have real person to talk to who will listen, who is informed, who will encourage them without being pushy
• Would prefer to pick from a pre-selected offering tailored to them, i.e. 3 or 4 options (or alternatives) with clear rationales rather than 100 they have to sort through themselves

Community

• Relationship-oriented
• Hope to make friends with others with whom they identify
• Gather multi-generations and friendship groups
• More influenced by peers than experts (referential, not deferential)

Enrichment

• Looking for cultural/personal enrichment
• Cooking classes
• Watercolor and art classes
• Local talks by professors on culture
• Eco and activist-tourism
• Stealth segment for huge growth potential: single women and girlfriends living together (multiple master bedrooms)