Comments

  1. Good information. Pricing could be one factor, but this could be a sales training or marketing issue as well.

  2. After 35 years developing and marketing retirement communities, I question the future of large up front entrance fee communities. Times have changed. The retiree marketplace has been changing for many years with most looking for an independent living environment with health services available when needed.. With quality rental communities with comparable health service packages now in existence, especially quality assisted living communities, the vast majority of today's retiree resists large upfront entrance fees–even in good home sales times. Thus, the reason for so many defaults in large entrance fee communities.

  3. I agree, Wilson, the emerging CCRC business model will not survive the financial and service demand of the coming generation of CCRC resident. those organizations that continue to believe "Old people will always need our services, so why change" are sailing on the Titanic. Tim Carmichael, MBA, MS-Gerontology, CASP.

  4. I have been seeing more and more stories predicting another housing crash in 2020 thanks to the coming influx of Boomers looking to sell their large, expensive homes, without an adequate market for this type of housing coming in behind them.

    The rising Milleniums are saddled with outrageous education debt and are predicted to be adverse to taking on another shot of massive debt. They also do not share the same values as The Greatest Generation did when it comes to pride in home ownership. The rising generation will place more value in choosing an affordable residence, on smaller lots, in walkable cities.

    In short, in the coming decade, EVERYONE will be looking to downsize their lives and the market for big-ticket homes will wither, taking with it any hope of being able to plunk down big-ticket entrance fees to get into traditional CCRCs.

    Here's just one story that touches on some of these generational housing market issues… http://www.theatlanticcities.com/housing/2013/03/

  5. Milleniums won't necessarily have the built up equity to sell their homes that the Greatest Generation has either, which further impacts the ability to "buy in" to expensive entrance fees