R.I. Housing Targets Booming Baby Boomer Market
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By Ryan McBride, Staff Writer
Rhode Island Realtors and developers are taking note of the rising numbers of wealthy baby boomers, tailoring their residential projects and marketing to cater to this post-World War II generation.
“I think the demand for (housing for people older than 50) will continue over the next 10 years, due to the growing size of this demographic,” said Stephen J. Olson, vice president and CFO for DePasquale Bros. Inc/R&W Realty Co.
“This is a hugely growing market,” added Olson, whose company manages 423 age-restricted apartments on Douglas Avenue in North Providence.
Olson said the size of this market shows in the occupancy rates at his age-restricted properties, which average 2 percent to 3 percent higher than average occupancy rates in his area.
The mature crowd is also willing and able, he said, to pay more than typical rents to receive the added amenities of his firm’s age-restricted developments.
DePasquale Bros.’ Douglas Terrace Apartments on Douglas Avenue offer units with numerous amenities – including a swimming pool, tennis courts and bocce courts – at rents from $850 to $1,445 depending on unit size, according to the company’s Web site.
The baby boomers, born between 1946 and 1964, are the largest generation in the nation with some 77.5 million people, according to the U.S. Census.
The Census also reports that between 3.5 million and 4.4 million U.S. citizens will turn 55 years old between now and 2012. By then, the total number of people aged 55 or older will reach about 100 million.
Yet it’s not only the number of people in that age group but their wealth that makes them an attractive market. Those people 50 years old or over own more than 75 percent of the nation’s wealth, according to the National Association of Home Builders.
The association expects the demographic group this year to account for 342,290 home purchases – 27 percent of national sales.
In Rhode Island, senior citizens (65 years old or over) make up 14.5 percent of the total population, greater than the national average of 12.4 percent, according to the 2000 Census.
Developers’ desire to attract retirees to their residential projects is apparent in their advertising. Just look at The Residences at The Westin, a high-rise condominium and hotel under development at the corner of Francis and Sabin streets in Providence, which has been advertised with billboards of a grey-haired couple cuddling in their new home.
Jane M. O’Connor, chairwoman of the 50-plus New England Housing Network for the National Association of Home Builders, said her group’s research has found that 15 to 20 percent of older people living in the suburbs are interested in relocating to urban areas.
“(50-plus) buyers are not motivated by a real estate purchase; they are motivated by a lifestyle change – that’s a huge difference,” said O’Connor, adding that this group likes the convenience and maintenance-free lifestyle in urban condos and apartments.
Baby boomer housing is also becoming more luxurious.
“Developers are finding that this group really likes customization and they are willing to pay for it,” O’Connor said. This demographic in general prefers hardwood floors, granite countertops and tiled bathrooms.
Also, age-restricted developments come without the stigma of adding students and education costs to municipalities like regular housing proposals, reducing opposition from local boards.
“The fact remains that if you designate your development as 55-plus housing, you are not met with the same resistance from municipalities,” Olson said. “Really what it comes down to is there are no children.”
To qualify as age-restricted, Olson said, 80 percent of the housing units must be occupied by someone who is 55 years old or older. And for developments restricted to residents who are 62 years old or more, 100 percent of the units must be inhabited by an age-qualified individual, he said.
“Very often people like to live with their own age group,” Olson said. “This group is looking to live in a quiet place and don’t want the children around except for when their children or grandchildren visit.”
Beyond his duties at DePasquale Bros., Olson is the founder of RetirementHousingOnline.com. The Web site features listings of rental and purchase units nationwide. It includes a national database of Realtors who specialize in selling or leasing retirement housing.
Published 10/22/2005
Issue 20-28
