Edition: December 2005



 Real Property

 By Alan N. Nevin
PropertyMaps: MLS Real Estate Search


« Previous Month | Next Month »

Senior Housing Power
As San Diegans age, builders scramble
to meet demand for specialized homes

Old people are taking over the world. AARP knows it and Congress certainly knows it. In San Diego County the politicians know it, too, even though this is a young county. The impact of aging is mighty.

In young San Diego County’s 2000-2030 timeframe, 61 percent of the total population growth will be persons 55 years of age or older. The 85-plus age group will almost triple. In its 2000 to 2030 projections, the San Diego Association of Governments foresees the county adding a net increase — births and immigration minus emigration and deaths — of 1.2 million people, but 1.3 million people 55 or older. In other words, the numbers of younger San Diegans will continue to fall as the birth rate declines.

That leads, of course, to the question of housing the 55-plus age group. We know that 85 percent of seniors die at home where they have always lived. A relatively small percentage move to an age-restricted facility; most often, that is when they require assisted living or skilled nursing. The average age of persons in those type of facilities is 85 and three quarters are female.

Having said that, the results of a new Del Webb Baby Boomer Survey indicate that 50 percent of boomers ages 50-59 plan to purchase new homes for their retirement. The majority indicated that they intend to buy a new home within driving distance of family members (one to three hours).

They want their new home to be near walking trails and have access to swimming and water fitness programs. Education, social activities and security features are also important considerations.

Of those in the 50-59 group, 80 percent will continue to work outside the house. Half say that they will continue to work 30-plus hours per week.

The combined desire to work, to remain near family and to move to new residences indicates the depth of the age-restricted housing market in San Diego County, both sale and rental product.

A housing type of particular interest is independent living, the Del Webb variety. Now an offshoot of Pulte Homes, Del Webb is the pioneer in golf-oriented, low-density, master-planned communities for the 55-plus crowd. The typical buyer is aged 62. In the past, the format has been communities of 2,500-5,000 homes, with a golf course or two and an 80,000-square-foot fully staffed activities center.

Most often, these communities have been in the Sunbelt, with Sun City, Ariz., leading the way.

Now, however, Del Webb is taking a new tack. It is looking to more urban locations, recognizing that the largest part of the age-restricted market doesn’t want to move away to another state or climate.

Two new prototype communities are under way. The first is a community of detached homes with walking trails but no golf course. One is being built in northeast Bakersfield. A second is closer to home, in Chula Vista. There on the lake, next to the Olympic Training Center, Del Webb will build 500 condominiums in four-story buildings with subterranean parking.





Also within the “for sale” sector and at the upper end of the scale is the Hyatt Classic in UTC. The first tower was built 10 years ago and now a second tower is being added and is mostly sold out.

Generally speaking, units start at $400,000 for 1,400 square feet. This is definitely a class operation. Between the two towers is a full-scale 73,000-square-foot clinic with 120-bed skilled nursing/Alzheimer’s facility.

In the same vein, but at a lower density, is La Costa Glen in Carlsbad at El Camino Real and La Costa Avenue, a 494-room facility that reads like a classic upscale garden community. It too offers skilled nursing and Alzheimer’s care. Apartments there are typically 800-1,200 square feet.

Yet another concept that deserves applause is Senior Resource Group’s La Vida Real in Rancho San Diego, a 320-unit independent living rental facility that offers hotel-like service. Ain’t cheap, but it is certainly inviting. One and two-bedroom homes rent for $3,000 to $5,000 per month, food and recreation included. La Vida also offers assisted living and Alzheimer’s/dementia care.

Craig Engstrand and Wayne Comfort have teamed up with still another product that is having strong appeal in North County. The pair have created market-rate garden apartments for rent. These are completely for independent living and have a lively social and recreation program. Most residents have cars and lead an active life.

Their newest project, the 204-unit Woodland Village in San Marcos, is nearing completion. Like La Vida Real, it consists of two- and three-story, elevator-served buildings with an Olympic-sized pool and a monster-sized recreation center. Woodland Village is tangential to a shopping center to be built with a drug store and ancillary retailing. It is also within walking distance of two nice city parks. Rent-up will start soon. One- and two-bedroom units, with 9-foot ceilings, washer/dryers and all the bells and whistles will start about $1,200 a month, including the services of a full-time social director and acres of parking.

Not within the same realm as these posh environs are the numerous affordable age-restricted residences operated by religious groups such as Episcopal Community Services, Salvation Army and B’nai B’rith and other social organizations and municipalities. A study MarketPointe recently completed for the county of San Diego documented more than 75 age-restricted affordable communities housing more than 10,000 persons. They are all over the county and most appear to be modern facilities.

San Diego appears prepared for the onslaught of bluehairs that will envelop it in the coming decades. Can you attach walkers to surfboards? Anything is possible in the land of lotus blossoms.

Alan N. Nevin is director of economic research with MarketPointe Realty Advisors (marketpointe.com), a consultancy providing real estate and demographic statistics, feasibility studies and litigation support to the California land use industry and legal professions. Nevin can be reached by e-mail at anevin@sandiegometro.com.


Story Comments

Good info/article

Posted by Meg at 11:48am on 2008 February 28

Post feedback on this story
This is a public form for the free exchange of comments. Foul language, threats and anything overtly mean or nasty will be removed.
Name (required)
Email (will NOT be displayed)
Email me whenever this thread is updated.
Message (required)