No. 8: Taylor Morrison
Like many builders, Taylor Morrison focused much of its post-recession efforts on the steady move-up–buyer segment. But it also recognized another huge opportunity: the 76.4 million baby boomers entering prime retirement age.
Erik Heuser, chief strategy officer for Taylor Morrison, says the company wants to attract boomers who are ready for a new lease on life—and can afford it. According to Nielsen, boomers are expected to hold 70% of the disposable income in the U.S. by 2017, and Heuser says he’s already seeing that spending power.
Erik Heuser - Taylor Morrison
“We’re seeing folks downsize, but in many cases spending the same amount of money on their homes,” he says. “Folks don’t seem to be scared to put money into options and really creating something that’s well-suited to their new stage of life.”
Of Taylor Morrison’s 6,311 closings in 2015, 12% came from active adult communities. The company opened its first one in Tampa, Fla., in 2011 and has opened 15 more since, including six in 2015.
Over those five years, the company has refined its strategy. The first few communities were defined as “age-targeted,” in which they were strongly marketed to the 55-plus crowd, but anyone could live there. Now, six of the nine communities that came on line last year or are planned for this year are age-qualified, where the homeowners must be over 55. Heuser says this provides for a clear definition of the offering and a protection of the experience.
The communities are also more dedicated to a truly active lifestyle. In-home entertaining spaces and nearby walking trails have increased in popularity, as have more “boutique-like” experiences: Instead of building massive amenity centers, the builder has switched to two or three smaller centers, with some spa-like and others more fitness-oriented.The company also believes this generation is healthier and more active than those before it. They’re not looking for a home with aging-in-place features just yet. Instead, Taylor Morrison has lifestyle directors who show prospective buyers how the community fits in
with the life they envision.
Not all boomers are ready to relocate, either. According to the Demand Institute, 51% of baby boomers who are looking to move want to be less than 30 miles from their current home, and 69% want to stay in their current state. Taylor Morrison is targeting the traditional relocating retirees with communities in Tampa, but it’s also serving the local boomers who don’t want to be far from family with locations in Texas, Denver, and Southern California.
Taylor Morrison has allowed for room to grow with its 16 active adult communities. “We’re only through a small percentage of [lots in these communities],” says Heuser. “We have a very, very deep and exciting land bank to serve the coming years. We’ve been very active at not only executing for today but positioning for the future.”
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