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Housing Developers target aging boomers

A housing style originally designed for “snowbirds” is migrating north from the Sun Belt.

Plans are in the works in Cumberland County for three “age-restricted” communities that cater to people 55 and older wishing to downsize their homes and be free of outdoor maintenance.

Traditions of America plans 525 homes west of Mechanicsburg on the Konhaus Farm property in Silver Spring Township. The Bethlehem firm also wants to build on 80 acres at Ridge and Lindsey roads in South Middleton Township.

A different developer, DD&K Inc., has an approved plan for 190 units on about 52 acres of the former Conrad Farm along Woods Drive in Silver Spring.

Market ‘underserved’

Proponents of this type of housing say it offers seniors the opportunity to own a home without the hassle of shoveling snow, mowing grass or making exterior repairs. This frees up time for baby-boomers and empty-nesters to travel and to enjoy such on-site features as a clubhouse and walking trails.

They are buying into a carefree lifestyle and a chance to spend quality time with people of own age and interests, says J.B. Reilly, a principal with Traditions of America.

“Age-restricted” communities first started in the South and were geared to seniors looking for a second residence in a warmer climate, Reilly says.

Gradually, developers began to realize many buyers did not want to move from areas where they lived most of their lives. Demand for this type of housing has been growing over the past 8-10 years in the Midwest and Northeast, he says.

So far Traditions of America has developed nine communities in the Pennsylvania-Delaware-New Jersey market, including five in the Lehigh Valley. The company is interested in the Harrisburg region because it has similar demographics and lifestyle preferences, he says.

“Frankly, the area is very attractive,” says Reilly, adding right now the market is “underserved.”

He calls the Konhaus Farm one of the best sites in eastern Cumberland County, as land is available there to build enough homes to justify such amenities as a large clubhouse for residents.

The proposed South Middleton site is close to features that make Boiling Springs and Carlisle a destination for visitors, including Children’s Lake, Carlisle Barracks and Yellow Breeches Creek trout, Reilly says.

He adds the plan is to attract buyers from within a 15- to 20-minute drive for homes priced between $200,000 and $275,000.

Reilly is optimistic that a demand exists. “A lot of people in the Harrisburg area desire this kind of community,” he says. “It’s going to have appeal.”

‘Change of pace’ sought

Scott Elliott, director of public relations for the Pennsylvania Builders Association, says the state is seeing an upswing in housing development that targets buyers 55 and older.

“There is customer demand everywhere for this type of community,” Elliott says. “People are looking for homes with less maintenance.”

He adds “age-restricted” communities simply provide another option to cover a niche for developers wishing to diversify what they offer buyers. “They are taking a gamble that what is popular elsewhere may be popular here.”

This is very much a viable trend, says Jim Mentzer, communications director with the Pennsylvania Association of Realtors. “People are looking for a change of pace to enjoy retirement.”

Age restrictions avoided

Carl Heintzelman wishes senior-oriented housing was more common in central Pennsylvania.

He is director of the seniors real estate services division of Howard Hanna Detweiler Realty of Camp Hill and says he knows there is a demand for such housing. He says seniors want to stay in the area and spend the rest of their lives in comfort after decades of work and caring for children.

Yet it has been like “pulling teeth” to get area developers to take a risk and invest in “age-restricted” communities which often include recreation facilities for active seniors, Heintzelman says. Local developers do not anticipate a rapid sale of homes in such communities.

“We think they are wrong, but we are not the ones with cash in the pocket,” he says.

While “age-restricted” communities are popular along the Delaware and New Jersey coasts, Heintzelman knows of only a few in Pennsylvania, adding they are almost nonexistent in Cumberland County.

He describes Bent Creek along Route 114 in Silver Spring Township as Cumberland’s “only true senior community” — and that is now almost completely filled to capacity.

He acknowledges developers may have a reason to be skittish.

Without the right financial planning, many seniors don’t have the money to afford this lifestyle — especially if they desire a new home with modern features, which could drive the price of the new home beyond what equity the buyer has invested in the older home they wish to leave, Heintzelman says.

He says “age-restricted” communities with homes priced between $175,000 and $225,000 would have the best chance for success in the local market.

As an alternative, Don Farinelli, president of Farinelli Construction Inc. of Mechanicsburg, says local builders commonly diversify the housing stock by incorporating design features in some homes to appeal particularly to active seniors.

Such homes are part of many neighborhoods throughout the county and include such features as single-story living, a master bedroom on the first floor and a guest room that can be used by visiting grandchildren, he says.

He says he was tempted to develop an “age-restricted” community in Upper Allen Township but decided against limiting his options to a specific group of buyers.

Developer Max Marbain says he would rather build some homes geared toward older buyers than designate whole neighborhoods as “age-restricted” and thereby limit his clientele.

Small homes with small yards are more likely to attract empty-nesters who want a property that is easier to maintain, Marbain says. “It just happens to occur that way. The market is only responding to it.”

Heintzelman says part of the appeal of such housing are design features such as walk-in showers, custom-built kitchens and doors wide enough to accommodate wheelchairs.

Low impact cited

Craig Engle, 66, a supplier relations agent with Yingst Homes, says he looked at an “age-restricted” community in Dauphin County but decided against it because he was concerned his heirs could have trouble reselling the home.

But Reilly believes demand for this type of housing will be strong for decades to come because of America’s population trends.He points out the average age of today’s baby boomer is just 50.

He adds municipalities that approve “age-restricted” communities are “ahead of the curve” and benefit from an additional tax base without greater demands placed on municipal services.

Typically, the streets and recreation areas are owned and maintained by a homeowners association, and the households are usually of only one or two people, he says.

With no children and a significant percentage of residents who are retired, there is less of an impact on traffic capacity at peak hours and school enrollment.

FYI: People should not confuse “age-restricted” communities with retirement villages, Heintzelman says. Retirement villages are centered around a continuum of care usually provided by an on-site facility such as a nursing home.

To qualify for a retirement village, seniors are subjected to a detailed financial analysis of their ability to pay fees over time to cover operating costs, he says.

He adds those living in retirement villages generally do not own their homes but have security in knowing they will never be put out regardless of their state of health.

Residents of “age-restricted” communities, on the other hand, own their own homes but tend to pay monthly fees to a homeowner association to maintain private streets and common recreation areas and in some cases to cover utilities.