MARKET
RESEARCH RESULTS:
* People are living longer and staying
healthier longer.
* American baby boomers will nearly double to 83.7 million by 2050, according to 2 reports released 5/6/14 by the U.S. Census Bureau.
* Baby boomers (those born between 1946 and 1965) are 26 Percent of the Population,
40 Percent of the Economy.
* American baby boomers 55+ have grown from 52.2 million in 1990 to 76.6 million in 2010.
* Baby boomers
between the ages of 55 and 74 are much more likely to own additional residential property besides their personal home.
* According
to the U.S. Census Bureau, the number of individuals in the US between the ages of 65 and 84 will increase by 38.8 percent
between 2010 and 2020, while the population over age 85 will increase by 18.7 %.18 This aging of the population will
create a large area of unmet demand in the following decade for retirement living. Demand for housing designed for older
Americans has been growing and is expected to continue to grow. (Ex: Providence Point addition in 2013)
* Baby Boomers (the single largest
economic group in the United States), represent more than 70% of U.S. financial assets and over half of all discretionary
spending, more than any other age group.
* Baby boomers and their families typically desire retirement communities that remind
them more of homes rather than institutions.
* Some seniors gravitate toward specialized facilities, such as golf communities,
and those focused around water activities.
*AARP: 78 million baby boomers will turn 60 by 2024. Until that time, approximately
10,000 people will turn 50 and 8,000 people will turn 60 EACH DAY.
* There are over 200 retirement-type facilities in this 50 mile radius.
* Active adult communities are attracting younger population (age 60 and under).
* The two top reasons empty nesters
want to move is 1) smaller house, and 2) less maintenance.
* Independent living facilities average 90% occupancy in the U.S. and almost 95% in the Pittsburgh area. (Ex: Providence Point, Beatty Pointe)
* Maintaining one's home is less
desirable as folks age, so the 55+ places have become increasingly popular over the last 15 years.
* In 15 years the trend for retirement
housing has morphed from assisted to independent facilities to a more homey floor plan (like us).
* The share of households age 55+
(2011) is projected to grow annually, and to account for nearly 45% of all US households by year 2020.
* The number
of 55+ housing keeps growing yearly. Many are high priced, over 75% are private pay, and some have waitlists up to two years.
*
Age-qualified communities, also known as 55+ communities, attract younger (55-70), more affluent members
than age-restricted communities
(75+ age).
* Top 10 Retirement activities Baby Boomers enjoy include gardening, golf, fishing, friends, hobbies, reading &
exercise.
* 55+ Adult Favorite amenities include recreational facilities, patio/deck, shuttle buses, near body of water,
open
space, parking lot, library, billiards/card room, fitness center, whirlpool spa, pool, shuffleboard, bocci
ball, horseshoes, tennis,
walking/jogging trails, golf putting green, exterior appearance, open spaces, large
kitchen, view and design.
* Baby boomers
listen to the radio 2 hours more per week than other adults.
* Talk radio is the older baby boomer favorite type station. Adult
contemporary radio is the younger boomer
preference.
* Older Internet users now make up the fastest growing demographic
in the U.S. Internet market. About 64% of
those aged 50-64 use the web, making approximately 38%
of all Internet users. Retirement websites get
thousands of monthly visits. Most include free advertisement listings.
* More than
380,000 mature adults move across state lines each year looking for a place to retire.
* Pittsburgh
is continually named in national periodicals as a top city to live and retire in.
SOURCES:
U.S Census Bureau; AARP; MetLife.com:
Met Life & the National Association of Home Builders(NAHB): Trends and Insights on Boomers (2009 & 2011 update); NAHB.org;
Journal of Management and Marketing Research; rab.com (Radio Advertising Bureau); Retirement-Cafe.com; TraditionsOfAmerica.com;
SBDC.net (small business development center); tips-for-boomers.com; Met Life Report on the Oldest Boomers (2013); 55Places.com;
Pew Research.org; Huffington Post; ABC news; Retirenet.com; PrivateCommunities.com; SeniorHomes.com;
RetirementCommunities.com; Forbes.com
Web pages/articles naming
Pittsburgh in the top cities for retirees:
http://www.forbes.com/sites/nextavenue/2013/07/03/the-best-cities-for-boomers-to-pre-retire/
http://www.huffingtonpost.com/2013/10/29/best-places-to-retire_n_4170909.html
http://www.bestplaces.net/docs/studies/seniorcities.aspx
http://money.usnews.com/money/retirement/articles/2011/10/17/the-10-best-places-to-retire-in-2012?page=2
Market
Segmentation
AGE:
* According to the U.S. 2010 Census, there were 71,257,280 people age 55-84.
(age ranges: 55-59 = 19,664,805; 60-64 = 16,817,924; 65-69
= 12,435,263; 70-74 = 9,278,166; 75-79 = 7,317,795; 80-84 = 5,743,327)
*
The 2010 U.S. Census and subsequent reports show that the baby boomers are enlarging the 55+ demographic more each year.
*
The Pittsburgh area has a very high percentage of this age demographic. Over a quarter
of Pittsburgh’s population is between the ages of 50 and 70.
U.S. 2010 Census Statistics broken down by 4 different age ranges between age 55 and 85 in the local area:
Pittsburgh:
5% is 55-59, 5% is 60-64, 5% is 65-74, 5% is 75-85 Therefore, 20%
of 306,000 total population = approx 60,000 people age 55-85
Wheeling: 15% is 55-59, 15%
is 60-64, 10% is 65-74, 6% is 75-85 Therefore, 46% of 28,500 total
population = approx. 12,825 people age 55-85
Weirton: 15% is 55-59,
15% is 60-64, 9% is 65-74, 8% is 75-85 Therefore, 47%
of 19,700 total population = approx. 9500 people age 55-85
Steubenville:12.7% is 55-59, 12.7% is 60-64,
8% is 65-74, 6% is 75-85 Therefore, 40% of 18,650 total population = approx. 8,000 people age 55-85
