Demand for S Senior i Housing Housing National Town Builders - PowerPoint PPT Presentation

Demand for S Senior i Housing Housing National Town Builders Association May 17, 2014 Gregg Logan, Managing Director

DEMOGRAPHIC TRENDS – SENIORS By 2050… o 88 million aged 65+ o 19 million aged 85+ • Large market for housing for older adult households • However… most want to age in their current home, many lack the access to the H i h i h l k h h services needed to do that • Incorporating senior housing facilities into TND is one option… • Building homes and neighborhoods that help residents to age in place providing • Building homes and neighborhoods that help residents to age in place, providing needed services, is another option… o Incorporate services into communities that help prevent pre-mature entry into assisted living assisted living ‒ One-quarter of households aged 65-74 include someone with a disability ‒ Two-thirds of households aged 85+ include someone with a disability ‒ Designs that accommodate disabilities enable residents to stay in their own g y homes National Town Builders Associate | MAY 17, 2014 2

TWO MAJOR AREAS OF 55+ HOUSING TO CONSIDER CONSIDER Senior Housing Active Adult • • Need-driven Lifestyle-driven Serving frail elderly, 80’s+ Young Seniors, 55+ • • Service-enriched housing Independent living • • Assistance with daily living Social programming • • M Meals, medical, social l di l i l R Recreational amenities i l i i • • Memory care Low maintenance homes • • Skilled nursing 75% of American homeowners’ home • • Can be a very expensive option Can be a very expensive option values are less than $350,000 values are less than $350 000 • • Active adult home buyers are seeking • moderate cost housing More about the community than the More about the community than the • house National Town Builders Associate | MAY 17, 2014 3

IN THE U.S. AND FLORIDA THE BIG INCREASE IS IN RETIREMENT AGE POPULATION IN RETIREMENT AGE POPULATION National Population of 60-75 Year Olds 2010, 2015, 2020, 2025 , , , 38M 56M 60,000,000 55,000,000 +3.3M +7.0M 7 0M 50,000,000 45,000,000 45,000,000 +7.9M 7 9M 40,000,000 35,000,000 2010 2015 2020 2025 National Town Builders Associate | MAY 17, 2014 4

IN THE U.S. AND FLORIDA THE BIG INCREASE IS IN RETIREMENT AGE POPULATION IN RETIREMENT AGE POPULATION National Population by Age 2010, 2015, 2020, 2025 , , , Avg. Retirement Age 62 g g Future Retirement Age 65+ 1 25,000,000 23,000,000 3,000,000 2010 2010 Population 21,000,000 19,000,000 2015 17,000,000 Population 15,000,000 2020 13,000,000 Population Population 11,000,000 9,000,000 2025 Population 7,000,000 000 000 5,000,000 50 - 54 55 - 59 60 - 64 65 - 70 70-75 5 National Town Builders Associate | MAY 17, 2014 5

NATIONALLY, A LARGE WAVE OF RETIRING BOOMERS IS COMING BOOMERS IS COMING Baby Boomers Estimated Rate of Retirement 2008-2030 4,400,000 4,200,000 4,000,000 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 At Age 62 At Age 65 NOTE: Based on an average retirement age of 62 according to the U.S. Census, Age 65 based on MetLife Middle Boomers Survey g g g , g y SOURCE: National Center for Health Services National Town Builders Associate | MAY 17, 2014 6

AMONG TOP 10 RETIREE DESTINATIONS, SUN BELT STATES RECEIVE THE LARGEST SHARE BELT STATES RECEIVE THE LARGEST SHARE Distribution of 55-74 Year Olds Moving in to Top 10 Retiree States 1 2000, 2005, 2010 , , 100% Virginia 90% Texas Texas 80% Tennessee 70% South Carolina 60% Nevada Nevada 50% North Carolina 40% Georgia C lif California i 30% % Arizona 20% Florida 10% 0% 2000 2005 2010 1 Does not include households that moved within the state SOURCE: 2000, 2005, 2010 American Community Survey; PUMS data; RCLCO National Town Builders Associate | MAY 17, 2014 7

ABOUT HALF OF BOOMERS PREFER INNER SUBURBS OR URBAN LOCATIONS SUBURBS OR URBAN LOCATIONS Assuming All Home Prices Are the Same, Please Select Which Proposition Best Illustrates What You Are Looking For in Your New p g Community 2012 100% 100% Inner-Suburban Community with 90% clubhouse and lifestyle activities, 26% broad range of attached and 80% single-family homes 70% 0% Urban Community close to jobs and entertainment, limited onsite 24% 60% amenities, families of all ages 50% Suburban Community with large Suburban Community with large 40% clubhouse, lifestyle activities, clubs 22% and fitness facilities, and restricted 30% to 55+ 20% Rural Master Plan Community Rural Master Plan Community restricted to residents 55+, resort 28% 10% style amenities, and wide range of home sizes 0% SOURCE: January 2012 Pulte Homes Baby Boomer Survey National Town Builders Associate | MAY 17, 2014 8

AGE RESTRICTION NOT NECESSARY FOR ALL BUYERS BUYERS If You Were to Move, Which of the Following Best Describes Your Preferences Regarding Moving to a New Community? g g g y 2010 60% 48% 50% 45% 43% 40% 35% 30% 20% 20% 9% 10% 0% 0% Prefer Age-Restricted Prefer All Ages No Preference 50 Years Old 64 Years Old SOURCE: 2010 Del Webb Baby Boomer Survey, based on respondents who were 50 and 64 years old in 2010. National Town Builders Associate | MAY 17, 2014 9

RETIRING TO NEW URBANISM: SENIOR HOUSING AND ACTIVE ADULT EXAMPLES AND ACTIVE ADULT EXAMPLES • New urbanism communities attracting mature adults and seniors: o Amelia Park in Fernandina Beach, Florida ‒ 421 unit TND ‒ 70,000 square feet of retail ‒ 80% of buyers are over age 50 ‒ Services allow residents to age in place S i ll id i l  Home health care, telemedicine system o Cascades Verdae in Greenville, South Carolina ‒ Senior housing within the Verdae TND Senior housing within the Verdae TND o Kentlands senior housing development across from town center appeals to seniors ‒ Near services and social outlets Near services and social outlets Middleton Glen , at Middleton Hills traditional neighborhood o development in Middleton, Wisconsin Village , a TND Active Adult Community y Silver Springs p g g o successfully sold out to senior homebuyers in suburban Atlanta National Town Builders Associate | MAY 17, 2014 10

TND AS RETIREMENT COMMUNITY: ALTERNATIVES TO THE VILLAGES AND DEL WEBB TO THE VILLAGES AND DEL WEBB • Aging Boomers that move at this stage of life seek communities that facilitate: o Health and fitness o Making new friends and enjoying an active social life o Being close to essential services o Low-maintenance property that frees them to travel, socialize, and pursue new interests o Amenities that support this stage of their lives ‒ Grocery stores, banks, parks, restaurants, health, fitness facilities ‒ Executive office space in a village center for second or third career, small Executive office space in a village center for “second” or “third” career small business, etc. ‒ Confidence that they’ll continue to be able to afford this lifestyle, i.e., some control over costs of living control over costs of living National Town Builders Associate | MAY 17, 2014 11

SAFETY AND REPUTATION ARE CRITICAL COMMUNITY COMPONENTS COMMUNITY COMPONENTS Living in a safe environment 4.58 Overall Reputation of the Area 4.30 Close proximity to quality doctors and hospitals 4.05 Proximity to shopping and restaurants 4.01 Having access to a wide variety of Amenities 3.95 A variety of housing options with different price 3.87 points Having access to water and nature Having access to water and nature 3 83 3.83 3.40 3.60 3.80 4.00 4.20 4.40 4.60 4.80 SOURCE: RCLCO Analysis of Survey Conducted December 5-December 10 th 2012 th National Town Builders Associate | MAY 17, 2014 12

COMMUNITY AMENITIES RECREATION & FITNESS: TRAILS TRAILS Parks / Green Spaces 3.80 Paved trail system for walking, jogging, biking, skating 3.55 Main Street Village Center with retail services and cafes for gathering and socializing with friends and 3.45 neighbors Outdoor Resort Style Pool 3.44 Cardiovascular Equipment and Free Weights for Cardiovascular Equipment and Free Weights for 3.35 Fitness Training Natural (unpaved) trail system for hiking and walking ( ) y g g 3.34 3.10 3.20 3.30 3.40 3.50 3.60 3.70 3.80 3.90 SOURCE: RCLCO Analysis of Survey Conducted December 5-December 10 th 2012 th National Town Builders Associate | MAY 17, 2014 13

RESIDENTIAL PRODUCT PREFERENCES: MATURE BUYERS MORE TH INTEREST, 48-57; MORE APT/CONDO INTEREST, 58+ 100% 90% 80% Detached Single-Family Home 70% 70% 60% 60% 63% 65% 67% Townhouse/ Row House 60% 50% 50% Apartment/ Condo in Building A t t/ C d i B ildi With More Than 5 Units 40% 8% Duplex/ Apartment Condo in 2 9% 5% 30% to 4 Unit Building to 4 Unit Building 16% 16% 11% 11% 12% 11% 20% Other 4% 8% 7% 10% 10% 16% 7% 10% 10% 7% 7% 4% 0% All Buyers 48 to 57 58 to 66 67 to 87 Over 48 SOURCE: NAR Home Buyer/Seller Generational Trends, 2013 National Town Builders Associate | MAY 17, 2014 14