Real Estate Development for Empty Nesters / Active Adults

1. Key drivers that impacted projects immediately preceding great recession (2000­2007)
Market dominated by large­scale communities [1] golf courses, lots of amenities, general extravagance http://www.aabri.com/manuscripts/11870.pdf ●
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seek “active leisure” to keep healthy and avoid negative stereotypes of aging motivations to buy new home in active adult community: family/personal reasons, financial/employment related, change in marital status, better quality house, less expensive housing ability to continue working from home even when retired benefits: “access to medical services, public transportation, shopping, greater social contacts and activities, reduced household chores
80 + percent of people prefer to retire close to home, near family, friends, and other longtime personal/professional ties house features: patio/deck, 2 car garage, oversized closets

http://www.jimchapmancommunities.com/blog/jim­chapman­impacts­50­housing­2/
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easy home living building specifications
○ zero step entries
○ wider doorways
○ maneuvering space in bath/shower

2. How recession affected primary development drivers

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People now more interested in smaller more intimate environments [1] in community courses seen as unnecessary expense

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People had to re­evaluate their retirement plans by rekindling their dreams
Kids move in with the parents after college, changing the previous plans for the parents to move into the luxurious houses.
● The kids have larger student loans causing them to avoid a rent check of their own/ unemployment ● “Economic recession is one of the most visible causes of financial distress. Declining consumer spending, dropping property values, and unemployment have direct negative

impacts on revenues like sales taxes, property taxes, and income taxes, not to mention implications for increased expenditures for programs like social services.”[2]
● “Changing age demographics can also be a significant factor. Areas with slow­growing and aging populations may find themselves with excess capacity in their schools. Large fixed overhead costs combined with fewer children means a higher cost per pupil.
Meanwhile, these same areas might face acute shortages of facilities for elderly citizens.”[2] ●
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[2]
“The stock market meltdown during 2008 wiped out 25 percent of most public pension plans’ investment portfolios. The result for many is a huge increase in their unfunded liabilities, with funding ratios dropping nationally from about 85 percent in 2007 to 65 percent in 2009 on a real­time basis. Many public plans will use actuarial smoothing to delay the impact of the required amortization of these investment losses, but ultimately the average public employer, based on this author’s professional experience, may soon face pension contribution increases of 20 to 40 percent.”[2]
● This “sandwich” generation is providing for an elderly parent and either a young child or adult: be frivolous with the money.
● http://www.gfoa.org/index.php?option=com_content&task=view&id=1155&Itemid=504

3. Identify the key drivers that will impact development projects over coming decade (2014­24)
p. 23 use the