Commercial Property News - November 2008 - (Page 10)

MARKET INTELLIGENCE SENIORS HOUSING while more Floridians are already residents when they retire. Many seniors could actually make a profit by selling their homes despite the price declines of the past few years, according to Patricia Will, CEO of Belmont Village Senior Living. Consider that the median price for a San Jose home in the second quarter of 1978 was $78,000. Thirty years later, the figure has risen 856 percent to $698,000, according to Fiserv Lending Solutions chief economist David Stiff. Someone who purchased a San Jose home in 1978 would still come out ahead, despite the 13 percent decline in house prices since June 30, 2007. An American Seniors Housing Association survey released in May found that most senior homeowners possess a selling advantage over the public at large.Substantial home equity and a lack of a mortgage provide them with pricing flexibility. The survey found that people who are at least 75 years old have lived in their homes for an average of 25 years, and 74 percent reported having paid off their mortgages. Still, seniors in some markets are hesitant to leave their houses behind for communities. “The affordability factor has not manifested itself,”Will said. According to Richardson, “Affordability always has been important to people considering a move to a senior living community and even more so today. Many individuals in this age group are on fixed incomes. Regardless of affluence, people are concerned about selling their home as part of a move, and they are concerned about their monthly income that has probably been impacted by the current economic conditions.” That leaves owners and operators in a bind. “Most of what we offer are services, and costs are going up,” Richardson noted. —Reach multi-family editor Eugene Gilligan at eugene.gilligan@nielsen.com. Visit www.cpnonline.com/propertytypes for coverage of more sectors. no time outs! Not Your Grandfather’s Seniors Housing Center Just a generation ago, a seniors housing facility might have boasted a woodworking shop or a bare-bones fitness center. Today’s communities have taken on quite a different look: s American Seniors Housing Association president David Schless noted an increase in computer centers. Such facilities are acting as “brain fitness” centers, offering software that improves memory function. s Senior Housing Investment Advisors Inc. president Mel Gamzon reported that seniors housing communities are frequently integrated into mixed-use projects, as city councils and zoning boards look favorably on the property type. “It’s like Mom and apple pie,” he said. s He also cited an increase in “continuum centers,” communities that include independent-living, assisted-living and dementiacare components. 10 Commercial Property News • November 2008 • www.cpnonline.com PANATTONI ® http://www.cpnonline.com/propertytypes http://www.panattoni.com http://www.panattoni.com http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of Commercial Property News - November 2008

CPN - November 2008 Contents Starting Line Seniors Housing Data/Analysis Conferences Through the Fog CPN’s Top Cities for Investment & Corporate Relocation Finance International Sustainability CPN-Nielsen Claritas Special Report

Commercial Property News - November 2008

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