According to the most recent National Association of Realtors’ annual profile of buyers and sellers, 51% of baby boomers who buy a home are looking to downsize. For those looking for amenities and walkability in retirement, look no further than a center city, Philadelphia neighborhood!
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17% of all first-time buyers are buying in urban areas. This is usually due to younger buyers wanting smaller and more convenient homes before possibly moving out of city areas to more suburban or rural locations. But 12% of all repeat buyers are also buying in cities, which could include those who plan to stay for life, or retirees moving back downtown after selling their suburban homes.
Although cities are often seen as the province of young adults who indulge in after-work happy hours and bicycle commutes, cities across America are trying to lure the retirement-aged crowd in.
By 2020, there will be 55 million people who are aged 65 and over (a growth rate of 36% over the course of a decade). People are also living longer. There are 40 times more people over the age of 85 than there were in 1900.
So what are the reasons city living is great both for baby boomers and the cities in which they live?
Economic investment in cities
Studies in several states showed that in-migrating retirees can help lift local economies. A 2006 study in Georgia, for example, estimated that if the state had held onto just 10 percent of its migrating retirees in 2007, it would have experienced significant growth in jobs, personal and disposable income, and net state revenues. And a 2011 study in South Carolina found that an influx in retirees in two counties was associated with wage growth, a rise in home values, job growth, and higher rents.
Some states are even incentivizing cities to offer things that will bring in desired retirees, like medical care and recreational opportunities, in exchange for making them Certified Retirement Communities. Ten cities are also making changes required to qualify for the AARP’s list of “age-friendly communities.” Other jurisdictions are launching their own marketing campaigns. Lawrence, Kansas, for example, is budgeting $60,000 to $80,000 a year for an advertising blitz to convince retirees to settle there.
Making connections
One thing many retirees question is how to deal with leaving friends and family, and to balance meeting new people with settling in an area they enjoy, for weather, aesthetic, or recreational reasons. The Chamber of Commerce in Oxford, Mississippi, one of the state’s certified retirement cities, came up with a “newcomer’s club” that holds monthly events for relocated retirees and others. In Auburn Hills, Michigan, the city’s recreation department and department of senior services are collaborating to get older adults out with concerts, potlucks, and fishing competitions.
Ease of transportation
Cities also are redesigning transportation systems to meet the needs of older adults. While many retirees might not think bicycling is the best way to get around (although some do!), being able to walk out your door and access restaurants, groceries, shops, and classes is important for maintaining independence well into old age. Access to public transit helps, too. In a 2010 AARP survey, about half of adults age 45 or older said living in a place where it’s easy to walk or living near church or social organizations was important to them.
In addition to pedestrian-friendly housing and retail, Philadelphia is also making sure all buses are handicap-accessible and all bus stops have covered areas to protect them from the rain. Some places are also using school buses to transport adults after morning school drop-off.
Better access to services
Other cities are focusing on better services. In Auburn Hills, the city set up a senior home repair assistance program that uses volunteers to do home repairs and provide services for older adults, like yard maintenance, painting, and fixing faucets. Recipients have to pay for supplies but not the services, and the program has no income restrictions.
With more older adults wanting to keep working, city and county agencies and nonprofits in Miami are holding workshops for employers to encourage them to hire older adults and are planning how to use city parks to offer senior-targeted fitness programs.
Jurisdictions also are preparing for the coming retiree wave by changing their building codes. For some new construction, Atlanta and Tucson are requiring wider doorways and hallways, no-step entrances, and reinforced walls so that grab bars can be added. Cities also are changing their zoning codes to allow homeowners to add small apartments where their parents might live.
While the most popular urban magnets for retirees still lie in the country’s warmer latitudes, cities like New York and Philadelphia hope their efforts will help them better compete as retiring boomers decide where to live.
Along the way, improvements like better transportation hubs and walkability will benefit not just those 65-plus, but everyone.
If you’re looking for the perfect city retirement, contact me so I can help lead you through the home-buying process in the right neighborhood for you. And remember, friends don’t let friends buy a home without Agent Lady!
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.
