While age-restricted developments are common across the Sun Belt, homebuilders also are responding to demand for the communities from baby boomers in other regions, including the Midwest.
The latest example comes from Atlanta-based homebuilding giant PulteGroup. This week it announced a pair of 55-and-over developments outside Indianapolis under its Del Webb brand.
The homebuilder held a grand opening last week for its 524-lot Sagebriar community in Greenwood, Indiana, and said one will follow for its 675-unit Finch Creek development on June 7 in Noblesville. Prices at both developments start in the mid-$300,000s.
Greenwood and Noblesville have higher median home values and tend to skew toward older populations, noted Blaise Tomazic, director of market analytics for Homes.com and CoStar.
Del Webb has age-restricted communities in 20 states, and nearly half are in the northern part of the U.S., according to its website. In February, Toll Brothers unveiled plans for a so-called active adult development northeast of Boston in Lynnfield, Massachusetts, its fourth in the Bay State. At the time, James Fitzpatrick, Toll's president in Massachusetts, said baby boomer buyers "aren't chasing the sun" and prefer to be near their grandchildren.
"As the country's population ages," Tomazic said in an email, "some people may prefer to stay in their hometown rather than retire to another city, and many of these potential buyers are probably in large homes that have too much space."
The 55-and-over developments, known for large clubhouses and live performances, offer a resort lifestyle and an array of sports and social activities.
Publicly held PulteGroup is the third-largest U.S. builder based on 31,219 sales last year, according to Builder magazine. Besides Del Webb, PulteGroup builds under the Pulte Homes, Centex, DiVosta, American West and John Wieland Homes and Neighborhoods brands.
In March, PulteGroup announced a new concept called Del Webb Explore that addresses growing demand from Gen X buyers for features and amenities typically seen in 55-and-over communities. The first two Explore developments will be in Southern California and in Florida's Tampa Bay region.