• by Jack Loechner , Staff Writer @mp_research, July 1, 2003

Builder Study Says Boomer Retirees to Relocate, but AARP Says Not So Fast

A new survey finds that baby boomers are more inclined to relocate when they retire than they were just a few years ago, contradicting a belief that most would prefer to stay put, writes Steve Kerch for CBS.MarketWatch.com.

The study by Del Webb, the adult-community homebuilder, of more than 1,300 boomers aged 44 to 56 found that 59 percent plan to relocate for retirement. In a 1999 Del Webb survey only 31 percent of those age 48 to 52 said they planned to move for retirement.

About one-third of boomers aren't sticking close to their current homes, either: 31 percent say they'll move more than a three-hour drive from where they now live.

Most importantly for builders catering to the aging-boomer market, 7 percent of those surveyed said they're likely to consider an age-restricted, active-adult community. While the percentage is small, it represents nearly 2.5 million baby boomers.

"Today's 55-plus buyer is more active than ever before and expects to get even more active when they relocate for retirement," said Dave Schreiner, vice president of active adult development for Pulte Homes. Physical activity will remain at center stage. Almost 90 percent of boomers agree they would be happier in retirement if they exercise, which 60 percent now do at least once or twice a week.

Activity will mean something different to most boomers in retirement that it did to their parents: 43 percent plan to continue working in retirement, with half of those people embarking on a second career.

When AARP asked Americans 45 and older, 83 percent of whom were homeowners, about their retirement housing, it found that most weren't considering a new home, at least not in the next five years. "One of the most consistent findings from the study is that people think they will be able to stay in their current homes for the rest of their lives," aid Elinor Ginzler, manager of AARP's Independent Living/Long-Term Care Initiative. "We also found that community characteristics and services are just as important as home features for successful aging in place. We have a lot of education to do in these areas."

While the Del Webb-bound boomers may be thinking about golf courses and yoga classes, homeowners who plan to stay put need to consider whether they have a bedroom and bathroom on an accessible first floor. "While only half of homeowners anticipate that they will need to change their home as they age, our gap analysis shows that Americans 45-plus consider some home features important that are not currently available in their home," said Linda Barrett, senior research advisor for AARP.

Neighborhoods are also important. Boomers say some key features include the proximity to doctors, hospitals, places of worship, shopping centers and grocery/drug stores. Safety is also essential.

AARP survey respondents also noted the importance of community services that would help them remain in their homes as they age, including door-to-door transportation, home-delivered meals and health-monitoring services. However, most say they don't know if their communities offer such services, or have contractors who specialize in home modifications.