Homebuilders Learn How to Market Home and Technology Options to Those Who Really Want and Can Afford Them.

It's no secret that as people get older they can get more demanding. And in the case of the active adult homeowner, that translates to the expectation of a flawless experience with homebuilders and their subcontractors.

That was the general message emerging from the recent Seniors Housing Symposium in Chicago in May, where builders, architects, merchandisers and decorators met to discuss the current and emerging trends in building for the active adult and senior brackets.

Sponsored by the National Association of Homebuilders (NAHB), the symposium focused on the so-called boomers, or those homebuyers who are from the post–World War II "baby boomer" generation. These consumers are in their mid-to-late 50s, nearing retirement, and are often seeking a new home or housing that reflects a downsizing of living space. For the most part, the active adult consumer wants less living space, but more in their living space. For the builder, this translates into more features and more options.

While the symposium name and theme seemed a bit at odds, looking at slightly different age brackets, the sessions primarily looked at opportunities for homebuilders to get in on the active adult market, which the NAHB says is the fastest growing segment of the housing industry. Presenters also attempted to define who the boomers are from a marketing and sales perspective, and to educate builders, designers and architects on what is unique to this demographic.

"They are very fussy for great customer service. You must deliver a defect-free house," notes developer Michael Rich, with Harbor Hills, in Davie, Fla.

Don't attribute this fussiness to their age. Remember, the active adult homebuyer has owned four or five homes already, according to the NAHB, and they may have worked with several contractors or builders before. If they have had any negative experiences, or been burned at all, the sins of the fathers will be visited upon you.

But along with flawless construction, active adult buyers want lots of amenities, says Rich. Since the active adult homebuyers generally have some disposable income, and are looking at probably their last home, they are very willing to invest in extras for that home. "Last year we did $20 million on options with boomers," Rich says.

If you need further proof, consider the recent comments by Ed Kerschner, U.S. chief investment officer at Smith Barney. Kerschner says the boomers will be the driving force behind several spending patterns in the economy. "As they have all their lives, baby boomers—Americans born between 1946 and 1964—will remain the most influential segment of the population."

That is awfully good news for builders, who need any opportunity to earn up-sells and upgrades of home options in a highly competitive marketplace.

Building on Opportunities

The not-so-good news to emerge from the symposium is that not enough builders are recognizing the opportunities to be had with active adults. Active adult communities that were showcased in an all-day tour preceding the event were modest in their home tech offerings. And many builders attending the show confirmed that they aren't pushing home technology.

More importantly, most builders and architects in attendance indicated that they had little or no experience with the active adult market, and were attending to find out what it is all about. Some were preparing for their first active adult development start, and wanted insights on what to include within individual units, and in the community buildings they plan.

Lloyd Geisinger, a homebuilder with Thorndike Development Co., in Norton, Mass., says the community centers in an active adult development are very important, since the sense of community is one of the most important factors homeowners look at when choosing a property. This makes the home technology features you install into recreation centers and community buildings very important investments. Your homeowners will spend a lot of time in these centers, and will want distributed audio, network and online access, and home theater.

Carol Miles, of the Pelican Point active adult development in Gonzales, La., concurs with Geisinger, and stresses the value of displaying as many options in your model units and showrooms as possible. This includes home technology options.

At Pelican Point, homebuyers can learn about, and select, all available options for their homes from very robust online design centers. These VDCs are a key selling tool for home technology options, especially if your individual salesperson isn't up on all the latest technology products and how they complement or replace existing ones.

In the long run, investments in home technology displays in model units or showrooms, in virtual design centers, and in education nights for potential or new buyers are bound to pay off several-fold, most presenters and panelists at the event agreed. After all, as one builder noted, his active adult buyers average 20 to 30 percent in upgrade purchases for every home he sells.

Perhaps the most important message to emerge from the event is that the building industry is paying attention to this market, and that builders are genuinely interested in active adult consumers.