Posts Tagged ‘Migration’

Sun City Arizona is 50 Years Old

Friday, August 20th, 2010

That seems almost impossible to believe.  Not so much its age per se, but the fact that it was built when the median age in the US was 29.5 and the oldest baby boomer was 14. Today the median age is 36.7 and the oldest boomer is 64. Del Webb died in 1974. I don’t know if anyone has written a biography of him but it would certainly be interesting to ask him how he came up with the vision of enormous retirement communities when the US was comparatively so youthful. Wikipedia notes his many accomplishments, but doesn’t touch on this subject. The entry does note though that on opening day, 100,000 people came to check out Sun City–so many that Del Webb had to survey the scene via helicopter.

In 2010, more than 40,000 people, 98% of them white, live in Sun City, which contains seven recreation centres,  eight golf courses, three country clubs, two bowling centres, an amphitheatre and a lake—the largest concentration of year-round recreational facilities in the United States. According to the 2000 census, 80% of the population of Sun City was over the age of 65. The median age is 75, twice the national median of 36.7.

These are staggering statistics. The oldest mid-sized urban area in Canada is Parksville, BC, on the eastern coast of Vancouver Island. Compared to Sun City, Parksville is positively youthful—only 34% of the population is over 65. Perhaps because of this comparative youthfulness, not many developers of golf course communities have been drawn to the Parksville area, notwithstanding its assumed appeal for retirees and seniors. The closest golf course community is Fairwinds, which offers “1,350 acres of living” consisting of one golf course, one marina, a community centre and 400 residential units. Arbutus Ridge is further south and a little bigger, with 600 residential units. The 830-acre Crown Isle Resort is an hour north of Fairwinds. And that’s basically it for active-adult type of communities in what is usually considered the epicentre of retirement living in Canada.

I wonder what Del Webb would make of that.

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Sarah Palin School of Public Policy: Stephen Harper, Tony Clement and the 2011 Census

Thursday, July 22nd, 2010

The furor over the 2011 Census reminds me of Sarah Palin claiming she understood international relations because she could see Russia from her front door. That is how all of us will have to operate in the future—without benefit of actual facts guiding our decisions.

I have noted in past posts how we rely on data from the long form to analyze seniors’ housing markets, including data on income and housing. I haven’t noted though how often we rely on mobility data to understand demographic patterns affecting markets and communities. Data from the long form tells us how many people of various age groups lived at the same address five years earlier, how many lived in another community in the same province, and how many lived in another province.

Well that is just downright intrusive, Tony Clement and Stephen Harper would no doubt say. But of course it isn’t intrusive and the data helps us to avoid mistakes. In my forthcoming book I mention the case of a former client of ours who was planning to build a big seniors’ housing project in the interior of British Columba. He was sure that people from all over Canada would flock to the community, partly because his site was in BC, an assumed magnet for seniors, and partly because it was a good site, right behind the Tim Horton’s. We were able to show him, based on long form data, that his assumption was mistaken and that the prospects for his site were not good.

Normally it is a delicate matter to tell someone that their plan isn’t a sound one but this client was far from perturbed. “You have saved me millions of dollars”, he said, and that is true.

The lack of long form data in so many areas of the Canadian economy and Canadian society is going to be an extremely costly, as well as a futile, exercise.

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2011 Census (Reprise)

Wednesday, July 14th, 2010

As the government is still persisting in its wrong-headed plans to ruin the 2011 Census, I thought it would be useful to explain in a little more depth why the Census information is so critical for seniors’ housing analysis.

Here is an example of a table we always use when we are doing a market study or a community housing needs assessment.  Here are just a few of the things this table tells us:

  • 83% of the 55+ households in this community are homeowners.
  • The average income of the renters is $38,509 compared to $73,094 for the owners.
  • Single (non-family) renters over the age of 85 have the lowest average incomes.
  • Although not shown in the table, the detailed data indicate that there are 565 renter households aged 65+ in this community with an income lower than $14,999. These are the households facing serious challenges in terms of meeting their housing needs.

Owners

Renters

Family Hshlds

Non-Family

Family Hshlds

Non-Family

Total

Avg Inc

Total

Avg Inc

Total

Avg Inc

Total

Avg Inc

55-64

4,880

$101,729

1,030

$47,153

600

$61,629

510

$30,613

65-74

2,450

$67,633

815

$36,961

220

$41,969

405

$28,178

75-84

1,140

$63,158

1,030

$32,375

125

$35,366

265

$26,375

85+

200

$50,621

255

$24,358

60

$47,584

235

$24,220

Sadly, we will never have this level of knowledge about seniors’ housing markets in future years because all of this information comes from the long form.

For-profit and not-for-profit developers, communities, governments, market analysts—we will all be forced to guess what is going on. Tragic.

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Americans Moving to Canada in Search of More Affordable Seniors’ Housing and Health Care?

Tuesday, June 15th, 2010

I read a comment about this recently. The writer was hypothesizing that as costs for seniors’ housing and health care rise in the US, Americans might move to Canada or Mexico in search of more affordable alternatives.

In both cases (i.e. Canada and Mexico) the fly in the ointment for Americans actually contemplating such a move would be health care and immigration policies, but aside from that, are costs really cheaper in Canada? My first reaction was scepticism but upon re-reading a few brochures I picked up at the recent ALFA conference in Phoenix, I thought: “well, maybe it IS cheaper in Canada, at least for some types of housing and health care”.

For example, at the Forum at Desert Harbor, the daily rate for a private room in the long term care component of the campus is $280, which is to say just over $100,000 per year. There aren’t many private pay long term care facilities in Canada that are charging $280 per day.

But at the same time, the rate at the Forum for a two bedroom 922 square foot independent living apartment is only $2,868 per month (the meal package includes breakfast and one other meal). The Forum is an upscale project with lots of amenities including a lakefront location, a pool, and a grapefruit tree, to say nothing of that desert climate.

Americans would have a tough time finding a similar value in Canada. The trick at the Forum is obviously to stay out of long term care!

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Migrating Seniors (reprise)

Thursday, May 6th, 2010

My last post discussed the surprising fact that Alberta attracts and retains more interprovincial migrants over the age of 65 than BC. Those migrating seniors are part of the 20% of the 65+ age group that moved between the last two censuses. Not all moved interprovincially of course—in fact, many more moved within the same province. To take BC as an example, for every 100 people over the age of 65 who moved between 2001 and 2006:

  • 49 moved within the same city or town;
  • 36 moved within BC;
  • 10 moved from a different province;
  • 5 moved from another country.

The proportions were almost exactly the same for younger BC seniors (55 to 64), which is interesting because that group contains many leading edge boomers. The expectation among many industry observers is that baby boomers will behave differently from older generations, but that expectation has yet to materialize in mobility patterns.

Generally speaking, the older people get the more likely they are to stay close to home. More people over the age of 75 move within the same city or town than other age groups, and fewer move between provinces. We might expect then that younger seniors would be more inclined than older seniors to move from province to province, but that’s not what happened, between 2001 and 2006.

One of the reasons for this is probably the snowbird phenomenon—people don’t move from province to province because they go away for six months every year. A far greater proportion of American seniors move from state to state: they’ve got all kinds of warm places to move to. Canadians have South Western British Columbia, milder than the rest of the country to be sure, but it’s not Arizona!

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Alberta, not BC, is Canada’s Retirement Magnet for Seniors

Tuesday, May 4th, 2010

Here is a chart that surprises almost everyone who sees it. Over the 10 year period between 1998 and 2008, Alberta attracted and retained considerably more interprovincial migrants than BC. The numbers come from Canada Revenue Agency records.

Interprovincial Migration of Seniors 1998 - 2008

Interprovincial Migration of Seniors 1998 - 2008

Note that we are talking here about NET migration, in minus out. The net figures are interesting but the detailed in and out comparisons are just as interesting, perhaps even more so.  As an example, about the same number of people moved to BC and Alberta over this period, but more left BC than left Alberta.

We will return to the subject in later posts but after having spent a great deal of time thinking about this apparent conundrum, we have come to the conclusion that the two major reasons for the ascendancy of Alberta are 1) much greater job creation, at least until the recent recession and 2) lower cost of living. Of course seniors aren’t moving to Alberta in search of jobs, but their kids (and grandkids) are. As for the cost of living, we have charted some amazing differences between the two provinces but overall, it’s probably about 25% cheaper to live in Alberta than in BC if you are over the age of 65.

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