Less space, but with lots of amenities
By Bridget Thoreson
The Business Journal of Milwaukee, July 27, 2007
When Jerry Kruse moves Aug. 1, he'll gain more than a new apartment in downtown Racine.
His one-bedroom is in the State at Main development, which has its own movie theater, exercise studio, business center, outdoor courtyard with grilling area, 16,500 square feet of retail space -- and no apartment residents under 55.
"It really looked at having an older community there, which is really nice," Kruse, 58, said.
The $19.7 million development, which will have its grand opening Aug. 24, is an example of how the housing industry is addressing the baby boomer market.
"People are active well into their later years, and that's the market we're trying to attract," said Chris Laurent, Wisconsin market president for Madison-based Gorman & Co., developer of State at Main.
Professionals say boomers -- born between 1946 and 1964 -- are already a big force in the housing market, and their influence will grow over the next several years. At a population of more than 1.5 million, about one of every four people in Wisconsin belongs to the boomer generation, according to the state Department of Administration.
Growing market
As the boomers grow older, their housing needs shift toward smaller space and more amenities.
"There's definitely a growing market for empty-nester homes," said Mark Henry, president of Lifestyle Homes of Wisconsin L.L.C., Mequon. "People want to move into something nice; their kids are out of the house."
John Holz, senior project designer at Milwaukee-based Plunkett Raysich Architects L.L.P., said this trend began to gain steam in the early 1990s.
"Now it is like a freight train," said Holz, who is also president of the Milwaukee branch of the American Institute of Architects.
Households headed by someone 55 or older account for 18 percent of the home-buying market, 21 percent of the market for new homes and 24 percent of the custom-built home market, according to the 50+ Housing Council of the National Association of Home Builders, based in Washington, D.C.
With all that market share, developers are paying attention to what boomers are saying they want to buy -- not just homes, but a lifestyle.
"The empty-nester and aging boomer are interested in living life. And in living life, they want to limit what I would call domestic chores," said Barry Mandel, president of Milwaukee development company Mandel Group Inc. "They use their home as a base, but they tend to want their groceries delivered to them, they tend to want their cars washed for them, they want health care facilities in the building or nearby, they want to be able to walk to restaurants or theaters, and they want to be more active."
In addition to these amenities, they want designs that will accommodate growing older. Lately a greater emphasis has been placed on features such as one-level homes without stairs, wider hallways, and walk-in showers with reinforced walls for grab bars, said Chellee Siewert, chief operating officer of the Metropolitan Builders Association, Waukesha.
"Even if they're not at the age that they necessarily need it, a lot more people are taking it into account and planning for the future," Siewert said.
They also expect a quality product. For example, Milwaukee development firm New Land Enterprises offers customers their choice of custom finishes, said Tim Gokhman, director of marketing and sales for the firm. The Milwaukee market has been trending toward higher quality appliances and furnishings in general, he said.
"The bar has definitely been raised," Gokhman said.
Don't call them 'seniors'
Even the names for older adult housing are changing to reflect this new population -- State at Main is called an "active adult development," for instance.
"We're realizing that some of the old terminology was really out of place and out of date with the clientele and the population groups that are moving into these places," Holz said.
Although this type of housing can be designed for every income level, professionals say the biggest markets are the mid-level income and the lower reaches of high-level income groups, from homes at about $250,000 to above $400,000.
People are also staying in the work force longer, so they are better able to afford a comfortable retirement, said Bill Zach, owner of Zach Building Co. in Oconomowoc.
"By the time they come to me, they're in a pretty good place," Zach said. "They've got some money stashed away."
The State at Main project hosts a mix of incomes, from the 23 condos, priced from $180,000 to $306,000, to the 84 apartments, where monthly rents range between $575 and $975. Two of the condos -- which are not age-restricted -- have been sold, and another six are in negotiations, and 16 apartment units have been leased or are waiting for approval.
It is key for designers to be aware of who these boomers are and what they are looking for, said Chris Gallagher, principal at Eppstein Uhen Architects in Milwaukee, which designed the State at Main Development.
"That helps you assist them in helping them achieve their goals, but also in designing really a home for them," Gallagher said.
Kruse, for one, cannot wait until he is in his new home.
"It's just gorgeous," Kruse said. "I'm really looking forward to moving."
Back
|