The 55+ Generation
What the Boomers are Demanding

by Robert D. Greenberg

On January 1, 2011, the first of the Baby Boomers, 76 million strong, started hitting retirement age at a rate of 11,500 per day and will continue to do so for the next 18 years.  The growing influence of these nearly 80 million Americans born between 1946 and 1964 on every consumer good and service will be significant, and their choices of where and how they will choose to live will have a very strong impact on the real estate market for the next two decades.

In years past, active adult communities tended to be exclusively described as quiet spots down by the Jersey Shore or in some far flung warm spots in Florida or Arizona.  The exodus of hundreds of thousands of New Jerseyans to the Sun Belt has created a major financial problem for  many Northern and Midwestern states.  Just as these residents reached their peak in earnings and a lifetime of accumulated assets, they have taken their wealth and spent their retirements elsewhere, draining billions of precious dollars of economic activity, job creation and tax revenue from their home state.

A lot has been said about local developers seeking to capture this market and prevent the ‘snowbirds’ from flying the coop and never returning.  In recent years, Boomers have have demonstrated a growing desire to stay near friends and family and have actively been seeking out luxury developments near suburban hubs, city centers and ‘edge cities’ along the Gold Coast. 

Emerging Trends
Owning your own home has always been one part of The American Dream, but today that pillar of our collective psyche is also undergoing changes. In a recent article in Perspective New Jersey, Trammell Crow Residential described the growing trend to rent rather than own for aging Boomers.  Their goal is to attract residents who don’t think of an apartment as ‘second best’ or even necessarily a transient situation, but rather people who enjoy the flexibility, coupled with the amenities, that renting represents today. “We build Class A properties that offer an upscale convenient lifestyle,” said Tricia Gretkowski, Development Associate, Trammell Crow Residential New Jersey.  “The firm’s apartment communities, like Alexan at Bayonne Bay, attract ‘singles, mingles and jingles’—essentially individuals who are not married, those who like to socialize on site and, in the case of ‘jingles’, older couples who may be downsizing from a house in the suburbs to experience a more urban lifestyle that may include being able to walk to shopping and transportation and experience relief from home repairs and maintenance.”

One key to the availability of such sites is often the recognition by older suburban towns that they must take a hard look at their downtowns and determine if they have the zoning and infrastructure in place, or could modify it to make it so, to attract developers to build in the heart of their communities and thereby retain longtime residents. Lack of water and sewer capacity is a serious problem for many communities who were founded on large lot, low density zoning---but these issues are finally being addressed.  ‘Walkable downtowns’ is a new mantra in many places across our state as concepts of New Urbanism continue to spread.  Sites near rail stations are highly desired so residents can finally leave their car at home if they wish when traveling into Newark, New Brunswick and New York City for cultural events.  Rosewood’s <b>40 Park<b> and <b>The Highlands at Morristown<b> are fine recent examples of this type of denser, urban development that are attracting many active adults.

A Wide Variety of Developments
The suburban markets in New Jersey also feature the traditional lower density models of luxury private home developments and condominiums, in a broad range of new projects including:

•  The Pointe at Turnbury in Monmouth Junction, Millennium Homes’ 190 townhome community

•  Greenbriar Fox Ridge in Rockaway Township, a 336-home luxury condominium community

•  The Monmouth in Manasquan, a 22-home penthouse-style development

•  Centex Homes, Pulte Homes and Del Webb’s Wanaque Reserve in Wanaque, Renaissance at Cranbury Crossing, River Pointe in Manchester, Ocean County, Traditions at Hamilton Crossing, and the 482 single-family home Equestra at Colts Neck Crossing in Howell, Monmouth County

•  Country Classics’ The Legacy at Readington

•  Lennar’s Greenbriar Oceanaire, a 1,400 single-family home community in Waretown, and Greenbriar Stonebridge, a 946-home community in Monroe, and Greenbriar Fox Ridge, a 336-unit condominium

•  Premier Developments’ Canal Walk in Franklin, Somerset County

   •  K. Hovnanian Homes’ Four Seasons at Manalapan, Four Seasons at Harbor Bay, and Four Seasons at Great Notch in Woodland Park

•  Larken Associates’ Delaware Crossing at Morris Park in Lopatcong, Warren County

•  Nobility Crest at Ocean

•  AB Monmouth’s The Monmouth in Point Pleasant

•  Madison Crossing at Birch Hill, Old Bridge

•  Hmarkhomes’ Flemington Fields in Raritan Township

•  Byron-Hill Homebuilders’ Villagio in Monmouth Junction

•  Sharbell Development Corp.’s Montage at Hamilton

•  Westminster Communities’ Waterford at East Brunswick, and

•  D.R. Horton’s Village Grande at Camelot in Glassboro and The Village Grande at English Mill in Egg Harbor Township. 

CCRCs
In our cover story we feature The Amsterdam at Harborside in Port Washington, Long Island, a 550,000 square foot, 312-unit development and a prime example of an increasingly popular form of 55+ community known as a CCRC, or continuing care retirement community.  They are often comprised of about 70% independent living residences, 15% assisted living apartments and 15% skilled nursing units---allowing the resident to ‘age in place’ and never leave their community and friends behind.  “We’re providing our residents with everything they need to have an active, healthy and fulfilling retirement,” states James Davis, President and CEO of Amsterdam House Continuing Care Retirement Community Inc.  The project features a choice of gourmet, casual and bistro dining, theater, library/media room, game rooms, art studios, and outdoor recreation spaces. While increasing in popularity, these forms of communities are typically harder to finance in most states as they often include a mix of government incentives and subsidies, may be heavily regulated and have more complicated zoning requirements.  For example, there are only ten of them in all of New York State despite a history of decades of successful projects.

Looking Ahead
No matter what the preference is for today’s active adults and aging Boomers, New Jersey’s developers and the communities they serve have created a plethora of residential options whether they prefer the seashore, the mountains, the small downtowns, city centers or the edge of the Hudson River.  As the Boomers continue to voice their desires and vote with their feet and their pocketbooks, savvy developers and wise civic leaders must continue to evolve their plans and offer options that will strengthen our communities and economic base and keep New Jersey as a prime place for its citizens to enjoy the rest of their lives.