- (TRENDS) Active Adult Market Expert Sees Innovation as Key in 2010

An expert active adult marketer tells HSR that 2010 will be defined by transition to new products, amenities, and outlooks on the part of the industry.

Todd Harff, president of the Virginia-based Creating Results marketing agency, says 2009 has been a stagnant year in active adult development and sales because of industry and economic uncertainty. However, he tells HMR that active adult builders are bent on finding ways to make big money -- and that undoubtedly will lead to innovation.

"The next year is going to be full of opportunity," Harff says. "People are going to start to think, 'OK, maybe we didn't do a proper market study. What products, pricing and setting are going to produce enough demand?'"

While Harff admits some uncertainty about what form the coming innovation will take next year, he nevertheless knows about trends that have run their course.

What's Out:

10-foot ceilings: Harff asks: "Do you really need that?" Boomers and "Silent Generation" consumers are going to want reduced heating and cooling costs. Higher ceilings equal more space, which equals higher utility bills.
Centering nearly all amenities and activities around a large clubhouse: Harff says current economic conditions may be causing consumers to lose their appetite for costly amenities and the monthly fees associated with them (often up to $600). Even so, there's no other cost-effective way to keep clubhouses operating fully. This may not affect boomers too much. "Integration of amenities in a greater community seems to work because boomers don't want to be put out to pasture," he says.
Loading up on high-cost green features: 50+ homebuyers love the idea of having green features in the home, but very few of them are willing to pay extra for them.
Luxury and Excess: Granite is nice, but is increasingly considered unnecessary by these consumers, says Harff. "There are some really great-looking surfaces made from the 'micas. They even have textured ones now that have the sensation of stone."

--Brian Shappell

Info: Harff, todd@creatingresults.com