Living the Good Life
The New Wave in Active Adult Communities

iy Samantha Morris and Ben Sage

The Phoenix new home market may have felt the impact of the housing slump, but communities aimed at homebuyers over age 55 have faired better than the rest. As the baby boomers age, the size of the market is growing by leaps and bounds. People over age 65 currently account for approximately one-fourth of all homeowners, and Harvard’s Joint Center Housing studies estimates that by 2030, seniors will number 70 million people or 20 percent of the population in the U.S.

According to the Census Bureau, the most important reason people move into age-targeted communities is the appealing design and look of the community. In response, developers pay particular attention to the streetscape the buildings and landscaping create as well as ways for residents to circulate within and around the community to be close to family, friends and leisure activities.

As the tastes of buyers have changed, so too have the amenities featured in active adult or “lifestyle communities,” because of the experience they are designed to create. Golf, tennis courts, swimming pools and clubhouses are still a mainstay of these communities, but the look and feel of these elements has changed dramatically from their first incarnation in the 1960s.

For example, many large communities feature multiple pools designed for active uses such as swimming laps and exercising, as well as resort-style pools with alcoves and waterfalls designed for relaxation. Modern clubhouses now offer fitness centers, computer rooms, business centers, billiards rooms, arts and crafts studios, catering kitchens with capacity for cooking classes, and even full-service spas and salons.

But perhaps the most significant trend in today’s active adult or lifestyle communities is the increased diversification and integration with other homebuyer segments. Whereas active adult communities were once built as stand alone communities exclusively for persons 55 and older, some communities now do not have legal restrictions on the age of their residents, appealing to a wider audience and offering the builder increased flexibility. Shea’s new Encanterra community in the southeast Valley targets buyers as young as 45. Del Webb’s Solera at Johnson Ranch and Sun City at Anthem Merrill Ranch are enclaves within a broader master planned community composed primarily of young families. This greater diversity of experience is a healthy and necessary outgrowth and reflection of the wide variety of preferences among active adult buyers.

While just 7 percent of the Valley’s new home closings are in age-restricted or age-targeted communities, this product type remains a vital part of the market strategy for several Phoenix’s builders. As the needs and wants of today’s buyers change and evolve, so too will the homes and communities designed for them. Although though these projects have fared better than traditional subdivisions, the housing downturn has created tremendous opportunities as well, with prices becoming more affordable for a larger percentage of the population.

Samantha Morris is the Senior Consultant for Metrostudy’s Arizona Region. Ben Sage is Director of Metrostudy’s Arizona Region. Metrostudy is the leading provider of primary and secondary market information to the housing and related industries nationwide.