Retirement Living News

July 2007

HEADLINES  (Click on headline to read story)

• Brookings' Report Sees a 'Senior Tsunami' Beginning in 2011
• NAHB Announces 50+ Housing Award Winners
• U.S. News & World Report Selects its 10 Best 
  Bargain Retirement Sports
• Kiplinger's Personal Finance Picks Five Best Cities for Retirement
• Retiring Baby Boomers Hasten Search for New Tax Revenue
• Florida Begins Effort to Reduce High Property Taxes
• New Book: Make the Right Move Now: 
  Your Personal Relocation Guide

Archive of Past Issues                          New Retirement Communities

NEWS STORIES

Brookings' Report Sees a 'Senior Tsunami' Beginning in 2011 

Aging baby boomers constitute this decade's fastest growing age group, expanding nearly 50 percent in size from 2000 to 2010. This group -- more highly educated, with more professional women, and more diverse than its predecessors -- will add new stresses to suburban and Sun Belt locations where they are predominantly "retiring in place" with demands for health, transportation, and other services. 

A report released last month by the Brookings Institution, a nonpartisan research group based in Washington, D.C., says that pre-senior (aged 55 to 64) populations are growing rapidly everywhere, especially in economically dynamic Sun Belt areas previously known for their youth, such as Las Vegas, Austin, Atlanta, and Dallas. "Exurban" parts of large metro areas, along with small metro areas like Santa Fe, NM and Boise, ID, seem to have attracted mobile boomers who wish to live near both work and natural amenities as they approach retirement. 

States experiencing the fastest growth in pre-seniors this decade form a solid wall in the West, led by Arizona whose pre-senior populations will expand 80 percent from 2000 to 2010. The one Western exception is California, where congestion and the high cost of housing may propel movement to other western states. Two other parts of the country that stand out as fast gainers are Florida and the high-amenity New England states of New Hampshire and Vermont. 

In states where senior populations (aged 65 and over) will grow the fastest over the next 35 years "aging in place" rather than migration will drive this growth. In Georgia, for instance, the senior population will increase by more than 40 percent from 2010 to 2020 due to the aging of existing residents, versus less than 3 percent due to migration. Arizona is close behind. The slowest growth is expected to occur in Pennsylvania and New York. 

The aging of existing baby boomers will dwarf senior migration as a contributor to senior growth in all but a handful of retiree magnet areas, which many states and small communities aspire to become. Many have set up marketing programs to attract retirees. This dynamic creates enormous new market potential as seniors look to relocate to new neighborhoods or new homes within their existing communities. 

The Brookings study, prepared by demographer William H. Frey, Ph.D, is based on an analysis of U.S. Census Bureau data on the changing size, location, and characteristics of America's senior (aged 65 and over) and pre-senior (aged 55-64) populations. To read the report, go to: http://www3.brookings.edu/views/articles/200705frey.pdf    
                                                                                           Top

NAHB Announces 50+ Housing Award Winners

The most outstanding work in the 50+ housing industry was honored by the National Association of Home Builders (NAHB) last month during the 2007 Best of 50+ Housing Awards ceremony held in conjunction with the association's Building for Boomers & Beyond: 50+ Housing Symposium 2007 in Denver. 

The NAHB 50+ Housing Council, which has promoted excellence in the seniors housing industry for the past 15 years, presented gold and silver awards in 58 categories to current and on-the-boards projects from across the United States and as far away as Japan. Design categories covered a range of product types such as active adult, assisted living, continuing-care retirement community, clubhouse design, rental apartments and renovated seniors housing. Winners were also honored for excellence in marketing strategies focused on the mature market. 

A 12-member panel of architects, builders, designers, marketing professionals and universal design specialists judged the projects on innovative architecture, interior design, merchandising, marketing, and how effectively they responded to the housing demands of the burgeoning 50+ market. 

The following is a list of winners in selected active adult and continuing care retirement community categories. 

Active Adult Housing (Overall Community - Small: up to 200 homes) Reunion North, South Jordan, UT (Community is sold out.)  
Puerta Azul, La Qunita, CA  

Active Adult Housing (Overall Community - Midsize: 201 to 750 homes) Grayson Hill, Richmond, VA 
Foxfield, Garnet Valley, PA  

Active Adult Housing (Overall Community - Large: over 750 homes) 
Leisure World of Virginia, Lansdowne, VA  
Regency at Dominion Valley, Haymarket, VA  
Arlington Ridge, Leesburg, FL  

Active Adult Housing (Home Design - up to 1,700 square feet) 
The Highlands of Glenmoor (Sussex model), Northampton, PA  

Active Adult Housing (Home Design - 1,701 to 2,400 square feet) 
Foxfield (Booth model), Garnet Valley, PA http://www.mckeebuilders.com/foxfield.asp 
Willow Green (Darlington model), Northampton, PA  

Active Adult Housing (Home Design - over 2,400 square feet) 
SaddleBrook (The Preserve model), Tucson, AZ 
One Cherry Lane (Lambert model), Greenwood Village, CO 

Continuing Care Retirement Community (Overall Community - over 200 units) 
Splendido at Rancho Vistoso, Tucson, AZ  
Kendal on Hudson, Sleepy Hollow, NY  
Westminster Canterbury Richmond, Richmond, VA 
Lions Gate, Voorhees, NJ  

To view a complete list of winners in all categories, click here:  
                                                                                     Top

U.S. News & World Report Selects its 10 Best Bargain Retirement Spots 

After consulting with some top retirement location experts, U.S. News & World Report came up with a list of 10 best bargain retirement spots. While not all will seem that they are cheap, and some may seem pricey, they have one thing in common: They offer a good value in retirement living. The magazine's picks appeared in the June 11 issue. 

Dahlonega, GA - Population 3,758; Median home value - $233,100; Cost of living - 0.3 percent below the U.S. average. 

Kennebunk, ME -- Population 5,168; Median home value - $299,200; Cost of living - 17.7 percent above the U.S. average. 

Fredericksburg, TX -- Population 9,504; Median home value - $118,300; Cost of living - 21.4 percent below the U.S. average. 

Melbourne Beach, FL -- Population 3,338; Median home value - $425,500; Cost of living - 32.2 percent above the U.S. average. 

Natchitoches, LA -- Population 18,202; Median home value - $107,800; Cost of living - 21.9 percent below the U.S. average. 

Salida, CO -- Population 5,348; Median home value - $185,500; Cost of living - 4.2 percent below the U.S. average. 

Sandpoint, ID -- Population 7,358; Median home value - $173,600; Cost of living - 6.7 percent below the U.S. average. 

Yuma, AZ -- Population 84,187; Median home value - $197,400; Cost of living - 2.2 percent below the U.S. average. 

Yucca Valley, CA -- Population 18,837; Median home value - $190,500; Cost of living - 1.7 percent above the U.S. average. 

Boone, NC -- Population 12,881; Median home value - $185,500; Cost of living - 11.1 percent below the U.S. average.
                                                                                          Top

Kiplinger's Personal Finance Picks five Best Cities for Retirement

The June issue of Kiplinger's Personal Finance magazine contains a list of the top five cities for retirees. The list is part of a larger list of the 25 best cities broken down into five life stage groups - Young singles, Mid-level professionals, Married with kids, Empty-nesters, and Retirees. 

In choosing criteria for the best retiree cities, the magazine said a city first had to offer vibrant cultural and education amenities, or be close to them. Specific criteria were reasonable health-care costs, a high concentration of doctors per capita, and a low total crime rate. To enjoy these cities, the magazine reported, retirees need to be interested in more than just golf and bridge. 

Tampa Bay, FL -- Population 2.6 million; Cost of living - 1 percent above the U.S. average. The cultural scene is rich with performing arts venues, and it has outstanding healthcare facilities. 

Pittsburgh, PA - Population 2.3 million; Cost of lving - 5 percent below the U.S. average. The city is affordable and filled with museums, great restaurants, and interesting neighborhoods. There are plenty of continuing education opportunities and medical facilities offering many healthcare options. 

Harrisburg, PA - Population 500,356; Cost of living - 3 percent above the U.S. average. It has a symphony orchestra, museums, plenty of golf, and good healthcare. 

Port St. Lucie, FL - Population 374,713; Cost of living - 3 percent above the U.S. average. It has two rivers, beachfront, and is not overly developed. 

Roanoke, VA - Population 279,269; 8 percent below the U.S. average. Located near the Blue Ridge Mountains in western Virginia. It is a small city with plenty of scenery and festivals that bring residents together. 

Kiplinger has just published its annual retirement planning guide which will be on newstands until October. It can also be ordered online at: https://www.kiplinger.com/store/annuals/retire.html
                                                                                          Top

Retiring Baby Boomers Hasten Search for New Tax Revenue

The retirement of the baby boomer generation starting in the next five years will exert significant pressures on all levels of government and the services they provide, their spending priorities and their tax systems, says a new study by Deloitte Research released on May 14. 

According to the "Serving the Aging Citizen" study, before 1995, elderly residents exceeded 15% of the population in only five states. But by 2025, the elderly share will exceed 15% in every state but Alaska and California, and "as the number of elderly increases, and the percentage of individuals assuming the tax burden decreases, policymakers will need to determine how to allocate scarce resources across competing demands from various age groups," the report says. 

"As the population and work force ages, state and local governments will have to examine how the growing number of elderly will impact the design and mix of services they offer, the funding sources they rely upon and the delivery channels they use to make the services available to their citizens," said Jessica Blume, national managing director, public sector and a principal of Deloitte Consulting LLP. 

The increase in the number of elderly citizens will drive changes in the composition of government services. Demand for many services that cater to the elderly will rise, while with fewer school-age children, demand for education and youth and child welfare services in some states will fall. 

The study finds that the shifting demographics will also force governments to rethink how they finance their services. 

"The issue is that as the number of elderly increases, there will be a smaller percentage of workers to cover the bulk of the tax burden," Deloitte says. "Given that income and payroll taxes can only be raised so much, state and local governments will have to find other ways of generating the revenue they need to fund public services." 

Researchers at Deloitte expect the search for revenue to increase the prominence of four trends: 

• Governments will modernize their tax systems to reduce their dependence on property tax revenues. This means fewer exemptions that poke holes in the tax base and a shift away from narrow-based, "idiosyncratic" tax structures. 
• The average retirement age will be extended, offsetting somewhat the erosion of tax revenues from income and payroll taxes. 
• There will be greater emphasis on user fees, which entail charging fees directly to the users of public services. County governments in the future could receive nearly as much revenue from user fees as from property taxes. 
• Public-private partnerships will grow, involving the emergence of a much bigger and more sophisticated nonprofit sector. 

To read the study, click here.                                                                                           Top

Florida Begins Effort to Reduce High Property Taxes

The first half of what is billed as the biggest tax cut in Florida's history became law on June 21 with Gov. Charlie Crist's signature, but many residents may be disappointed because their savings will be relatively small. 

The bipartisan law is expected to slash up to $15.6 billion in local property taxes during the first five years. But those reductions will be spread across-the-board to all classes of property. The estimated average cut for a primary homeowner is $174, or 7%, in the first year. Second homes and other residential properties are estimated at $199, also 7%, and commercial-industrial at $941, or 6%. 

Florida voters will decide on January 29, 2008 whether to adopt the second half of the plan which could increase the total five-year cut to $31.6 billion. It would mostly benefit owners of primary homes, known as homesteads. Other residential properties and businesses would not benefit as much. 

A special problem in Florida is property tax inequity. Some homeowners are grandfathered in to large homestead exemptions, so they pay far less than new homeowners with a similar house across the street. This creates an inefficient lock-in effect in which some families can't get a good price for their home because any new owners would immediately face a tripling or more of the property tax bill.

Although Florida family incomes have risen 37% since 2001, average property tax bills have risen 83 percent. In some communities, such as Boynton Beach, average property tax bills have tripled in seven years. 

The battle over rising property taxes is underway in at least a dozen states, including Indiana, Illinois, New Jersey and Nevada, where a decade of property tax bill creep and now fallling property values are cutting into family finances. 

Across the nation, the rise in home values in recent years has boosted property-tax bills sharply. The average annual property-tax burden in the U.S. stood at $1,132 per person in 2005, up 13% from 2000 in inflation-adjusted terms, according to data from the Commerce Department. Residents of Wyoming and Washington, D.C., saw the largest rises: Their tax bills went up by 49% and 42%, respectively. New Jersey had the nation's biggest property tax bills, at $2,206 per capita, up 13% from 2000. 

In many areas, housing prices in recent years rose too quickly for local tax assessors to keep pace with them. Now, tax assessments are catching up just as market prices are slumping. Floridians feel they are being taxed out of their homes. United Van Lines reports that, for the first time in many years, more American homeowners packed up and left Florida than arrived in 2006. The inflation in property tax bills is one reason. A recent Zogby poll found that in south Florida more than half of homeowners said they would consider leaving the state.                                                  
                                                                                            Top

New Book:  Make the Right Move Now: Your Personal Relocation Guide

Relocation, whether for retirement or changing your life, can be a major life stressor. However, you can reduce your stress by doing your homework ahead of time. In her book, Make the Right Move Now: Your Personal Relocation Guide, Barbara Brady offers a guide to moving through the process of deciding if you should move, and if so, where you should go. The chapters in the 100-page book build on each other to guide you through the relocation process. 

The workbook part of the guide asks a lot of questions and urges you to respond with your own thoughts on paper. The answers should help you identify and find your ideal place to live and create a relocation plan that fits your needs. Toward the end of the book you can glean wisdom from the stories and advice of diverse singles and couples who've relocated successfully. 

Brady has a Master of International Management degree and is an intercultural trainer and transition coach. For more information about the book (and to order a copy) go to www.lulu.com.
                                                                                              Top