Senior living communities respond to Houston's hot real estate market

By: Rebecca Maitland, senior living correspondent.

The perfect storm is brewing in the senior living industry in and around Houston, and the advice being offered is if your plans for retirement include moving into a retirement/senior living community, planning a year or more in advance is highly suggested.

The perfect storm includes many parts. First, the real estate market in Houston is very hot, and people are taking advantage of the higher selling prices seen today. Moreover, when their house does sell, they are planning on moving into a retirement/senior living community. Yet, homes are selling quickly in some of the more popular areas around town. Homes in other areas are not staying on the market for more than three months in most cases. After their house sells, they begin shopping for a senior living community, only to find that many are at capacity or close to being full.

"We usually have a couple of vacancies for our smallest units, but most people are looking for larger apartments. Some people move into the small units and wait for a larger one to come available. Right now, we have a waiting list, which is almost a year long. We encourage people to begin planning for retirement at least a year out, if they are planning on moving into a retirement community," said Donna Giorgio, retirement counselor, Brazos Towers at Bayou Manor.

Also, baby boomers, the largest group in America's history, are moving into retirement and are beginning to look at retirement communities, as 8,000 baby boomers every day are now turning 65. There are approximately 76 million baby boomers, and this group, compared to the generations before them, are the wealthiest, most active and most physically fit of the generations. They are also the generation that received peak levels of income. Therefore, they could and can reap the benefits of abundant levels of food, material items, and are expecting the most from retirement programs, which is spurring changes throughout retirement/senior living communities as programs, amenities and renovations are on the forefront.

Another segment of the storm is Houston's job market, which also is booming. More than 120 people a day are moving to Houston. When adult children move to Houston for a job, their parents are following to be close to grandchildren, and they are looking to move into retirement communities.

"We are seeing many people following their adult children to Houston, who come here for jobs. With all of the activity in Houston these days, we are 97 percent full, and on average we stay at around 95-96 percent full," saidPam Burgeson, Eagle's Trace, an Erickson senior living community.

When the baby boomers were babies, everything baby was booming. When the group entered elementary school, new schools were opening to accommodate them, and with each segment of their lives, the industries associated with this group boomed. The next industry to boom, which is already on its way, is senior living communities.

"We are seeing a lot of growth in the number of senior living communities in and around Houston, with many different styles of living, price points, and a lot of variety to accommodate the growing number of senior citizens, mainly due to the baby boomers moving into retirement," Burgeson said.

In fact, both Brazos Towers at Bayou Manor and Eagle's Trace are expanding, which was planned at least five years ago, as they prepared for the baby boomers moving in their direction.

"We are building a new 14-story high-rise that will be connected to our existing building. This building will have 84 independent living apartments, 24 assisted living and eight memory care units, with 40,000 square feet of common area. The common area will include an Olympic-size swimming pool, fitness center, bistro, media room for events, and more," said Michelle Watkins, retirement counselor, Brazos Towers at Bayou Manor.

However, 82 of the 84 independent living units already have been reserved, and the high-rise will open in 2015.

"Also, when smaller units become vacant, we are combining and renovating them to be one unit, to help meet the demand for larger units that we are seeing," Watkins said.

Eagle's Trace is on 71 acres, with an 8.5-acre lake with lots of green space. Yet, only one-third of the land is built out.

"During the first three years, we completed four residential buildings, and the recent construction completed the continual care facilities. The next phrase, which will begin in the near future, will be to increase independent living apartments," said Jody Schroeder, sales counselor, Eagle's Trace.

Watkins and Burgeson both noted that it was not uncommon for adult children in their 70s to come for a tour with their parent(s), who are in their 90s. The 90-year-olds are not being ready to give up their homes. Yet, the adult children are thrilled by all the community offers and asks to be put on the waiting list.

"It is important to plan ahead with all of the activities in the real estate market, booming job market and the baby boomers retiring. Plus, we hope people will move in when they can appreciate and enjoy a maintenance-free life and all senior living communities offer today," Burgeson said.

Erickson Senior Living Communities has been providing senior living facilities and care to senior citizens for more than 30 years. Brazos Towers at Bayou Manor has been a senior living community with continual care inside the Loop for the past 50 years.

"Experience matters," Watkins said.