Retirement Living News

October 2009

HEADLINES  (Click on headline to read story)

• Study Finds Baby Boomers Want Convenience and 
  Energy Efficiency in One-Story Suburban Homes
• New Report Says Boomer Migration to Rural Communities 
  Will Increase 30% by 2020
• Census Survey: Northeast and Parts of Midwest Continue to Rank Highest in Property Taxes on Homeowners
• Pew Research Center Releases Survey On Seniors 
  Who Want To Work in Retirement
• Alzheimer's Cases to Rise Sharply Worldwide
• New Book: Solace: Finding Your Way Through Grief 
  and Learning to Live Again
• New Book: Old is the New Young: Erickson's Secrets 
  to Healthy Living

Archive of Past Issues                          New Retirement Communities

NEWS STORIES

Study Finds Baby Boomers Want Convenience and 
Energy Efficiency in One-Story Suburban Homes 

A survey released last month reveals that 55+ Americans would prefer suburban living in single-story homes with amenities, particularly high-speed Internet access, for their later years, and they don't consider "universal" design a priority. These are some of the findings from 55+ Housing: Builders, Buyers, and Beyond, a survey conducted by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute, which asked owners and renters about their current homes and the types of homes, communities and features they prefer as they age. 

The survey also questioned builders about specific features provided in new homes and how much customers are willing to pay for them, which revealed interesting contrasts. While builders seem to be providing more universal design features (lever-handle/door knobs, wider doors and hallways, a full bath at the entry level), consumer preferences don't reflect an equal appreciation of such items. Consumers indicate they want amenities such as non-slip floors, larger medicine cabinets, lower kitchen cabinets and emergency call buttons, but those features are not as widely included in new homes. 

On other issues, builders and consumers are closer to agreement. Consumers clearly want to be close to community resources like shopping and medical services; builders and developers have responded by placing communities accordingly. Builders are providing more energy-efficient and environmentally sensitive features. While many consumers note that they are conceptually supportive of these efforts, fewer indicate a willingness to pay significantly more for "green" homes. 

"The data suggests that builders will have to be more tuned in to consumer needs, but potential buyers may be somewhat shortsighted as well," said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. "The homes consumers say they want may present difficulties for the long term as they age in place. They prefer the suburbs and the country, but these areas generally lack public transportation. Universal design is not a strong preference, but they'll need greater accessibility later on. Aside from recognizing that one-story homes will be best for their later years, customers may be somewhat unrealistic." 

NAHB Chief Economist David Crowe pointed out that as the housing market returns to health, builders will need to be increasingly responsive to changes in the market for 55+ housing. 

"These surveys were conducted as consumers were watching their savings shrink and as builders were seeing sales grind to a halt," said Crowe. "So this study reflects the very latest in the changing perceptions of what is most important in housing for this age cohort." 

Other survey findings included the following: 

• One-third of consumer respondents would choose a close-in suburb and nearly another third prefer an outlying suburb. About one-quarter would choose a rural community and 9% prefer a center-city setting. Single-story homes are a clear first choice among respondents (79%) over two-story (15%) or split-levels (6%). 
• While conventional wisdom dictates that older buyers would be looking to downsize, most consumers say they'd like their next home to be the same size as their current one. 
• The five features rated most important by consumers were: in-home washers and dryers, storage space, windows that open easily, main level master bedrooms and easy-to-use climate controls. 
• Eighty-three percent of consumer respondents rated high-speed Internet as somewhat to very important. 
• While consumers expressed a preference for maintenance-free lifestyles, with services such as interior and exterior home repair, transportation, housecleaning, etc., few builders offer such services, which depart from their primary business of construction. 
• Twenty-seven percent of potential buyers say they are not concerned about the impact of home building on the environment. Another 23% are concerned, but say that will not be a consideration when they make a purchase, and 37% of consumers responded that want an "environment-friendly" home, but would not pay extra for it. Only 12% said they would be willing to pay more. 
• Ninety-four percent of builders report that their buyers want more energy-efficient new homes; 55% said buyers specifically want EnergyStar®-rated homes. Twenty-five percent of builders said buyers want homes with more recycled materials and less materials overall. Most builders (69%) indicated that some of their buyers are willing to pay extra for green amenities; 9% indicated that most were. The remaining 22% said none of their buyers were willing to pay extra for green amenities. 

The research in 55+ Housing: Builders, Buyers, and Beyond is from the second part of a series, the first part of which was released in April. That first segment, Housing for the 55+ Market: Trends and Insights on Boomers and Beyond, included an in-depth profile of the 55+ market based on figures from the U.S. Census Bureau's American Housing Survey from 2001 through 2007. (See our story -- click here)  

The National Association of Home Builders is a Washington, D.C.-based trade association representing more than 200,000 members involved in the home building and remodeling business. Mature Market Institute is MetLife's research organization and a recognized thought leader on the multi-dimensional and multi-generational issues of aging and longevity.
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New Report Says Boomer Migration to Rural Communities 
Will Increase 30% by 2020

The U.S. Department of Agriculture (USDA) released a report in August titled Baby Boomer Migration and Its Impact on Rural America that analyzed age-specific, net migration data from the 1990s. It used the data to identify the types of nonmetropolitan counties that are likely to experience the greatest surge in baby boom migration during 2000-2020. The study also projects the likely impact of the size and the distribution of retirement-age populations in destination counties. 

The report finds a significant increase in the propensity to migrate to non-metro counties as people reach their 50's and 60's. It sees a shift in boomer migration toward more isolated settings, especially those with high natural and urban amenities and lower housing costs. If baby boomers follow past migration patterns, the non-metro population age 55-75 will increase by 30 percent between now and 2020. 

The presence of seasonal housing is a particularly strong indicator of areas likely to attract retirement-related migration. This association reflects the importance of recreation and leisure activities for those building ties to future residential destinations. Many people identify a future migration destination while vacationing or visiting family and friends. Retirement-related migration may not be a discrete event that occurs in a finite period of time. Individuals or families may purchase a second home to visit for a few weeks a year or on weekends. Then, when the children leave home, sojourns to the second home become more frequent and the "cottage" or condo may be renovated into a more substantial residence. 

Modern telecommunications technology and increased airport accessibility have made work from these remote locations possible and increase permanent moves to second home destinations in recent years. To read the full 20-page report, go to http://www.ers.usda.gov/publications/err79/err79.pdf
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Census Survey: Northeast and Parts of Midwest Continue to Rank Highest in Property Taxes on Homeowners

New data released last month by the Census Bureau on owner-occupied housing shows Northeast homeowners and select states in the Midwest tend to pay the most in property taxes with the highest counties being in New York and New Jersey. Louisiana and much of the South tend to have the lowest property taxes on homeowners. 

The Tax Foundation has analyzed the data and issued a report titled New Census Data on Property Taxes on Homeowners, authored by its senior economist Gerald Prante. The analysis is based on newly updated data from the Census Bureau's 2008 American Community Survey which ranks high-population counties across the country according to various property tax measures. "In the county rankings, there has been little change from the 2007 numbers, where the Northeast, specifically New York and New Jersey, dominated the highest-taxed counties," Prante observes. 

The top 10 counties in median real estate taxes paid for 2008 are, from 1 to 10, Westchester County, NY ($8,890); Nassau County, NY ($8,628); Hunterdon County, NJ ($8,492); Bergen County, NJ ($8,446); Rockland County, NY ($8,430); Essex County, NJ ($7,924); Somerset County, NJ ($7,743); Morris County, NJ ($7,557); Passaic County, NJ ($7,370); and Putnam County, NY ($7,324). The national median is $1,897. 

The top 10 counties in median real estate taxes as a percentage of median home value for 2008 are all from the state of New York, from 1 to 10, Niagara County (2.89%); Monroe County (2.85%); Wayne County (2.82%); Chautauqua County (2.60%); Cayuga County (2.54%); Cattaraugus County (2.52%); Onondaga County (2.51%); Erie County (2.48%); Oswego County (2.42%); and Chemung County (2.38%). The national median is nearly 1 percent (0.96%). 

"Among states, the story is much the same as for the top counties: The Northeast area of the country has the highest property taxes, along with pockets elsewhere, such as Wisconsin, Texas, Nebraska, and Illinois," Prante said. 

The top 10 states in median real estate taxes paid for 2008 are, from 1 to 10, New Jersey ($6,320); Connecticut ($4,603); New Hampshire ($4,501); New York ($3,622); Rhode Island ($3,534); Massachusetts ($3,406); Illinois ($3,384); Vermont ($3,281); Wisconsin ($2,963); and California ($2,829). The top 10 states for median real estate taxes as a percentage of median home value are Texas (1.76%); New Jersey (1.74%); Nebraska (1.72%); Wisconsin (1.71%); New Hampshire (1.70%); Illinois (1.57%); Vermont (1.53%); Connecticut (1.50%); Michigan (1.45%); and North Dakota (1.41%). 

Readers will find several tables (below) useful in viewing a summary of the analysis. 

New Census Data on Property Taxes on Homeowners (Report Summary) http://www.taxfoundation.org/news/show/25197.html. 

Full County List Ranked by Property Taxes Paid http://www.taxfoundation.org/taxdata/show/23649.html. 

Property Taxes by County Ranked as a Percentage of Home Value (2005-2008) http://www.taxfoundation.org/taxdata/show/1888.html. 

Property Taxes on Owner-Occupied Housing by State (2004-2008) http://www.taxfoundation.org/taxdata/show/1913.html. 

The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.
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Pew Research Center Releases Survey on Seniors 
Who Want To Work In Retirement

A new nationwide survey released last month by the Pew Research Center's Social Demographic Trends project finds that a majority (54%) of workers ages 65 and older say the main reason they work is that they want to. Only 17% say the main reason is that they need the paycheck. The balance of those respondents (27%) said that say they're motivated by a mix of desire and need. 

When the respondents were asked about their reasons for working, older workers emphasized social factors such as feeling useful, an activity to do something and to interact with other people rather than the need to augment their income. 

The survey also showed that almost four-in-ten adults who are working past the median retirement age of 62 say they have delayed their retirement because of the recession. Among workers ages 50 to 61, fully 63% say they might have to push back their expected retirement date because of current economic conditions. 

All of these survey findings are consistent with a Pew Research Center analysis of U.S. Census Bureau data that show that the labor force participation rate of older adults, which declined from 1950 until the middle of the 1980s, has been rising ever since. This trend has accelerated during this decade, especially in the current recession. 

To read the full report, click here.                                                                                         Top

Alzheimer's Cases to Rise Sharply Worldwide

As 78 million American baby boomers age, the prevalence of Alzheimer's disease will skyrocket. Economically, it has the potential to bankrupt an already fragile health care system. Socially, we have yet to overcome much of the stigma associated with it. In terms of basic knowledge and research, Alzheimer's is progressive, it is fatal, and there is currently no cure for it. 

Data released on September 21 -- World Alzheimer's Day - by Alzheimer's Disease International (ADI) estimates that 35 million people worldwide - a 10% increase over 2005 - are living with Alzheimer's and dementia - and living longer. This number is expected to double every 20 years, to 65.7 million in 2030 and 115.4 million in 2050, highlighting the urgent need for action and response, says ADI. Some other countries, like the U.K., have a national Alzheimer's plan in place, according to Harry Johns, the president of the U.S. Alzheimer's Association, one of the members of ADI. 

Federal spending on research for Alzheimer's in the U.S. is far lower than some other diseases, like cancer and AIDS, according to Mr. Johns. And, there's no national plan in place that deals with long-term care for people with dementia, as well as "care coordination" of the many different health-care professionals who are often needed to care for patients with Alzheimer's. 

The ADI report concludes that the demographic changes and the growing impact of dementia make it imperative that governments take urgent action to improve dementia services in their own countries. It also calls for more efforts to improve the quality and availability of care, as well as efforts to find more effective treatments coupled with an urgent investment in primary disease prevention measures. To read the executive summary of ADI's World Alzheimer's Report - 2009, click here .
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New Book: Solace: Finding Your Way Through Grief 
and Learning to Live Again

This book is written to provide comfort and to help you get on with your life when someone you love has died. It gives compassionate and practical advice to the bereaved as well as specific actions to help cope with loss. 

The author, Roberta Temes, Ph.D, is a noted pyschotherapist who has taught classes in death, dying, and bereavement at several academic institutions. Dr. Temes has included many real life situations from her practice in the book and explains how they were handled. She notes that we all experience grief in our own unique way. No one can tell you exactly how you'll feel or what to do. 

The book will help you consider the pros and cons of bereavement groups, counselors, and other sources of help. There is even a chapter on helping children through grief. She also discusses a number of Internet sites and other resources that may also be helpful. 

To purchase a copy of the 146-page paperback, click here. 
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New Book: Old Is the New Young: Erickson's Secrets to Healthy Living

Old Is the New Young: Erickson's Secrets to Healthy Living highlights tips for youthful living for people of all ages. The book empowers seniors to live happier, healthier, and more active lives. It provides information about the four most important areas in life - mental fitness, physical health, social engagement, and financial health - and encourages readers to take self assessments included in the book to chart a course for overall retirement well-being. 

The book is co-authored by Erickson Retirement Communities' Chief Medical Officer, Matt Narrett, M.D., Chief Operating Officer Mark Erickson, the former associate executive director of Erickson's Greenspring Retirement Community, Jacquelyn Kung, and senior health writer Lisa Davila Old Is the New Young: Erickson's Secrets to Healthy Living is published by Globe Pequot Press and is available for sale online from them (click here) or from Amazon.com.
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