Baby Boomers' Housing Needs Hard to Pinpoint

By Chuck Chiang, Calgary Herald

September 11, 2008

Canada

Even though Calgary is known as a young city, the baby boomer market may still not have been fully tapped, says a housing industry leader.

The key to attract boomers is to cater to each micro-segment within the group, says Jane O'Connor, president and CEO of 55 Plus LLC -- a company that helps builders market products to those nearing retirement age.

"There is no one-size-fits-all solution when it comes to marketing condo and villa housing to older buyers," she says.

"If you're looking for a silver bullet, I don't have it." In a recent speech hosted by the Canadian Home Builders' Association - Calgary Region, O'Connor told members they must make sure they know their buyers and their specific needs.
Builders must look beyond marketing to baby boomers as a group, says O'Connor, adding that a 55-year-old's housing needs will be completely different from those of a 70-year-old.

Because of that, she suggests builders avoid the term "seniors" when marketing their product, because active retirees dread being classifed as such.

"Don't put that term out there," says O'Connor. "That will make them run for the hills." The key to successfully marketing housing to baby boomers is market research, she says.

This allows builders to pinpoint where customers are for a specific product and what consumers are looking for, and better tailor projects to the market, says O'Connor.

"You have to sell a lifestyle," she says.

"They don't have to move. Most of them are paying off mortgages already.
"Give them a reason to move. Have activities like offering social environments. Many of them golf." Up to 40 per cent of all households in the both Canada and the U.S. are 55-plus in age.

Currently more than one million Albertans are age 45 and up.

"They are going to want what they want," O'Connor told builders. "It's your job to deliver." Although Calgary isn't known for its seniors population, it is not a market that can be ignored, says Doug Whitney, first vice-president of the CHBA-Calgary Region.

"Calgary has one of the youngest median ages in Canada, but the trend is moving quickly toward early retirement," he said during the meeting attended by O'Connor.

In a later interview, Whitney said knowing and marketing to micro-segments within the baby-boomer population is crucial for targeting this growing market.
"Niche, or micro-segment, marketing is a phenomenal tool for home builders to use as they focus on market research so that they can get very specific about their target market," he says.

"They create not a very unique selling proposition, but a unique market for which they can become the market specialist." Ultimately, O'Connor says, it comes back to selling more than just a product, because older clients, like other buyers, are looking for more than a home when they invest.

"It's about gaining their trust and confidence," she says.

"Sell your company, location and quality first. Remember, you're selling peace of mind."

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