New Jersey Active Adult Communities

Apparently, in New Jersey, there were difficulties getting the typical residential subdivision approved. So many developers/builders pursued rezoning for 55+ Active Adult, Age-Restricted status. As many of our NARA members know, getting a 55+ Age Restricted rezoning is generally easier because it means less traffic and no kids, among a number of other more palatable community advantages.

However, in NJ, builders may have overdone the rezonings and some 55+ age restricted communities are struggling. This has prompted some communities to seek to drop their Age Restricted and open up the community to all ages.

USA Today focused on this issue recently. The link to the story is:

http://www.usatoday.com/news/nation/2010-03-21-age-restrictions-in-new-jersey_N.htm

Haya El-Nasser, a good reporter, asked me to identify any Active Adult community across the country that was struggling to the point that they were interested in giving up their 55+ designation. As I told her, there were only a handful across the United States and the majority in NJ. Of course, the article seems to indicate that this issue is widespread.

It is not. Active Adult communities that have done a good job are continuing to do well. Those what did not study the market with their location, amenities, lifestyle, etc. are not doing as well. At our annual NARA Conferences, we spend hours discussing and the hearing from experts about development, building, positioning, branding, advertising, marketing, etc.

The Active Adult, Age Restricted market can be fabulous with many buyers paying cash. But, they are savvy and won't take less than a good value. This is what a few developers and builders around the country have found out. The market is huge and growing and loosening. As I said in the USA Today article: "You can't ignore the demographics."