Sonic Boomers

Baby boomers are not your average homebuyers. Builders and developers, who are eager to profit from the tide of retiring boomers that's already starting to flood Southwest Florida, are constantly tweaking their homes and communities to keep up with boomers' desires, whether for wine rooms or environmentally friendly neighborhoods.

The boomer market is wealthy and massive, with 77 million Americans born between 1946 and 1964. A third of today's baby boomers want to move when they retire, according to statistics from Del Webb, developer of such well-known "active-adult communities" as the Sun City developments in Arizona and Florida. That desire has fueled sales in Southwest Florida, where Collier County already ranks among the top spots for retirees. According to the 2000 U.S. Census, 34,361 Collier homeowners are ages 55 to 74, and 51.4 percent of those bought homes since 1995.

"This is a powerful demographic in terms of sheer size and buying power," says Jeff Jenkins with the National Association of Home Builders (NAHB), which has a Seniors Housing Council. "It's good business to court the boomer market because the numbers are so favorable right now."

Most aren't ready yet for retirement but are buying vacation homes in Southwest Florida, often with an eye to moving into them when they do retire or make a career change. Others have retired from the corporate world and are launching second careers in Southwest Florida as entrepreneurs. Still others continue to shift their investments from the stock market to real estate-preferably where property is more affordable than in the Northeast, where prices skyrocketed in the 1990s.

And boomers are set to gain even more expendable income with inheritances. Money flowing to boomers from the elder generation is expected to reach more than a trillion dollars a year over the next 20 to 30 years, putting tremendous wealth at boomers' disposal, says Ken Plonski, vice president of public relations for WCI Communities in Bonita Springs. With that kind of incentive, developers are focusing on attracting the boomers before they actually retire from their jobs.

One number that continues to drop is the average age of national buyers. Ten years ago, the average was 67, but it has decreased to 61 in recent years, according to the NAHB.

WCI Communities discovered the power of perception when it began to market its Sun City Fort Myers development. Popular in the 1960s, '70s and '80s, Sun City developments by Del Webb drew retirees wanting a resort-oriented lifestyle. Although many communities today play up their resort-style amenities, the Sun City name wasn't drawing buyers to WCI's Fort Myers project.

"The Sun City name doesn't have the same kind of appeal to that particular group of people as to the previous generation," says Plonski.

The boomers weren't connecting with the idea of the Sun City-branded lifestyle their parents may have enjoyed; some found it regimented and homogenous. So WCI decided to change the community's name to Pelican Preserve, and sales took off, Plonski says.

"It's amazing what a name can do for you," he says.

As with WCI's name change, builders and developers understand that the baby-boomer market must be treated differently than former retirees. "While we're a home builder, we're not selling a home as shelter; we're selling a home as a channel into a more attractive lifestyle," Plonski says.

Buyers are more free-thinking and individualistic, and they want homes and communities they see as reflections of themselves, Jenkins says. The traditional idea of retirement days spent playing golf and tennis and lying on the beach doesn't appeal to everyone.

"Builders have had the mindset of one product for everyone, but they've really come to understand market niches," he says.

Landmark Development Group, which builds luxury homes and villas in upscale golf-course neighborhoods in Naples, works mostly with buyers born from 1950 to 1960. "We're riding the tide of the luxury, affluent retirees who are in their mid-50s," says Michael Diamond, vice president of sales and marketing.

Its strategy is location: The homes are in communities that include Quail West, Mediterra, Grey Oaks, The Colony and TwinEagles. "We're smart enough to be located as a builder in the communities ultimately attracting them," he says. "It's Naples itself that is attracting people."

The design has become more focused on the entertainment options and amenities boomers want. Landmark builds homes with a minimum of four bedrooms, opulent master baths, media rooms, wine rooms, club rooms with a library and/or billiards table and bar, plus spacious kitchens with gourmet appliances.

"They like to drink wine, they like to entertain, they like nice kitchens," Diamond says. "They want more room in their home, the best of the best, the nicest wine room, the best appliances."

The National Association of Home Builders has found that baby boomers believe the kitchen should be the "heart of the home," while the bath should act as the "sanctuary." Nationwide, builders and architects say demand is growing for smaller communities with interesting streetscapes and high-end homes designed for individual lifestyles. Main Street communities, exclusive enclaves and age-targeted villages within master-planned communities are gaining popularity, according to the home-builder group.

Some not only eschew the cookie-cutter community, they also are scaling back amenities packages to pay more attention to the design of homes and communities that appeal to baby boomers, whether it's high-tech homes or neighborhoods with an in-town feel and a connection to a university. "Builders are finding out that they don't necessarily have to have the most ostentatious clubhouse," Jenkins says.

WCI, which ranked second in 2002 on Big Builder magazine's list of companies that serve mature buyers, sells a majority of its homes to buyers ages 45 and up. Buyers are looking for well-manicured and well-designed golf courses by big-name architects, a boating environment and fitness-related amenities such as personal trainers and large workout centers, Plonski says.

Marketing strategies are changing slightly. Developers spend millions of dollars advertising in regional and national lifestyle publications and other magazines that attract boomer readers. Jenkins says companies are mixing up their media, still placing ads in newspapers and magazines, but also turning to the Internet. "These consumers are pretty Web savvy, pretty tech savvy. They're doing a lot of research even before they show up at the community," he says.

Some are seeing niche markets within the baby-boomer group, such as singles. Communities are reaching out to single buyers, one group Plonski says uses word-of-mouth advertising. "More so than direct advertising, the singles who live there tend to be the real catalyst for attracting more singles," he says.

Mark Mathosian, financial administrator with the Florida Department of Financial Services, recommends boomers talk to others living in a community and look at all the choices before deciding where to purchase. The boom has created an "if you don't buy it, we'll sell it to someone else" attitude among some builders, he adds. "It's easy for a builder to get an arrogant attitude when there's a line at his door."

It's tough to determine what impact baby boomers are having on prices, which have exploded in Southwest Florida. Diamond estimates prices have increased three to four times in the last several years and sees 400-percent increases in property values. Instead of downsizing, many boomers are buying homes the same size or even bigger, even if they're on smaller pieces of land, Jenkins says. Many are using equity in their current home and taking out mortgages to buy more expensive homes.

Plonski predicts the baby-boomer influence on the home-builder business won't wane for some time. "The gigantic tidal wave of boomers is going to be cresting over the next 10 years," he says.

Calling All Boomers

Here's how the National Association of Home Builders defines developments that appeal to boomers and seniors.

Active-adult communities: Single-family homes, townhomes, cluster homes, manufactured housing and multifamily housing targeted to adults 55 or older and excluding younger residents, per the Fair Housing Law. Residents lead an independent, active lifestyle. These communities are not equipped to provide increased care or health-related services. Amenities often include a clubhouse, a golf course, walking trails and other recreational spaces. Outdoor maintenance normally is included in a homeowner's association or condominium fee.

Age-targeted communities: Single-family homes, townhomes, cluster homes, manufactured housing and multifamily housing targeted to adults 55 or older, but not explicitly age-restricted. Residents lead an independent, active lifestyle. Like active-adult communities, they're not equipped to provide increased care or health-related services and offer the same type of amenities and maintenance.

Seniors apartments: Multifamily rental housing restricted to adults 55 or older. These properties do not have a central kitchen and generally do not provide meals to residents but may offer social and recreational amenities.

Independent-living communities: Age-restricted multifamily rental housing with central dining facilities that provide, as part of a monthly fee, meals and other services to residents.

Assisted-living facilities: State-licensed and regulated rental housing that provides the same services as an independent-living community, plus assistance with activities of daily living from trained employees.

Continuing-care retirement communities: Age-restricted properties that offer a combination of independent-living, assisted-living and skilled-nursing services to residents all on one campus. Payment plans vary but usually include a long-term contract.

Nursing homes: Properties where most residents require 24-hour nursing or medical care.