Our housing crisis: Seniors want to live here, but can they afford it?

Note to readers: The News-Press reported Nov. 20 that the median single-family home in Lee County sold for $513,500 in August, a 20.8% increase from a year ago. Meanwhile, the average monthly rent was $2,362 in October, a 3.5% year-over-year increase. Affordability is a growing concern for families, but what about seniors on a fixed income? Randy Thibaut, founder and CEO of Sage Communities, shared his thoughts about affordability, housing options for seniors and a solution for a “new way of living” that is rising in Southwest Florida.

For two decades, you were CEO of LSI Companies, which your son has taken leadership and ownership of, so what is your focus now?

THIBAUT: “I am still actively involved with LSI and an emeritus member of Lee BIA Builders Care, but have turned my primary attention to senior rental housing while I continue to invest in land throughout Southwest Florida. The region’s population has grown to 1.5 million, and although more families are moving into Southwest Florida, baby boomers are driving our growth. The latest census shows 31.6% of Southwest Floridians are 65 or older. The region’s health care system adapted, as evidenced by the addition of hospitals, clinics and cancer treatment centers. Unfortunately, we cannot say that housing has responded to the senior surge, particularly the affordability angle. Every day, 10,000 baby boomers nationwide turn 65 and most of them are not millionaires. Therefore, senior rental housing is a great choice for those who don’t want all of their retirement funds tied up in their personal residence and most either don’t need or don’t want to live in assisted living facilities for a variety of reasons. Mostly, it’s due to the fact that seniors are healthier now than ever before and no one looks forward to living in an assisted living facility.”

Can seniors afford to move here?

THIBAUT: “Yes, but it’s becoming increasingly difficult if you weren’t making six figures during your career. Retired teachers, nurses, social workers, bank tellers, restaurant managers and others are getting hit with sticker shock. If you put 20% down on a $513,500 median home, you’re looking at a monthly mortgage payment of about $2,800, plus property tax, insurance and any HOA fees. You could easily be looking at $4,000 per month.”

What housing options are available for seniors?

THIBAUT: “Seniors really have just three housing options: stay in your current home as you age, move into a retirement community or find an apartment complex.”

What are the problems with those three options?

THIBAUT: “If you stay at home, you’re stuck with all the maintenance and upkeep. When I retire, the last thing I want to be doing is mowing the grass and calling around to find a reputable handyman to fix my appliances.

If you move into an assisted living community, you might be on the hook for a hefty buy-in or be forced to pay for bundled services, like health care or a meal plan, that you don’t need or want. Most age-qualified residential communities in Southwest Florida fall on the high end of the price range.

If you move into an apartment complex, your neighbors might be families with children, college students or 20-somethings who don’t go to bed until 2 a.m.”

What do you envision as a solution?

THIBAUT: “Renting. Generations ago, people worked into their mid 60s and stayed in their homes a few more years before their health started to decline. That’s when they moved into a retirement community or assisted living center. There wasn’t really a need for any sort of transitional housing. Now, people are retiring in their 60s or early 70s and still have another 10 or 20 years of relatively good health before they need to move into a residential care facility or group home.”

Is there a stigma attached to renting?

THIBAUT: “When we were children, we always heard about homeownership being ‘The American Dream.’ Financial analysts hype homeownership as a great investment, and it is, and they often downplay renting as ‘throwing away your money.’ Renting has always been a good transitional option, but it’s predominantly been associated with younger adults who just moved out of their parents’ home, graduated from college or got married.”

Is that what inspired you to create Sage Communities?

THIBAUT: “Yes. We spoke with many seniors, retirees and soon-to-be-retirees when developing the concept for Sage Communities. There was a solid consensus on some factors:

• They no longer want to deal with the headaches of maintaining a home.

• They want to cash out equity in their homes while the real estate market is high.

• They want to live somewhere that feels and looks like a resort.

• They want to be surrounded by people with similar interests.

• They don’t want to be locked into long-term contracts or pay unnecessary fees.

The solution was to become a renter.”

What does your vision look like for a 55+ rental community?

THIBAUT: “A standard apartment rental is just a place to sleep, eat and relax. We are building a concept that pairs safe, comfortable living spaces with elements of an active adult lifestyle. Our first community, Seneca at Oak Creek in North Fort Myers, just finished construction this fall. Units feature a full kitchen with energy-efficient stainless-steel appliances, upgraded cabinetry and granite countertops. Bathrooms have chrome-appointed fixtures and tiled showers. Each suite offers an in-unit washing machine and dryer, as well as a private, screened-in porch and an option for an attached garage. Accessibility is a key feature with barrier-free entrances and single-story buildings.”

What qualifies as "resort-style amenities" at Seneca at Oak Creek?

THIBAUT: “Every resident has access to the Amenity Lifestyle Center, which offers a 24-hour fitness center and active fitness room, swimming pool with barbecue grills, resident community room, library, dog park with cleaning station and bocce courts. The community also employs an on-site wellness and activities coordinator who plans social events, community gatherings and fitness classes.”

Is a 55+ community a retirement community?

THIBAUT: “Not exactly. Although most residents in Seneca at Oak Creek are retired, some are still working part-time or full-time. Remote work is increasingly common among all generations, so you can feasibly have a resident with a job in New York or Massachusetts who lives in a ‘retirement community’ in Southwest Florida.”

How do your prices compare to other rentals in the market?

THIBAUT: “Our floor plans start at $1,890 per month and include maintenance, as well as unlimited access to social and fitness activities. The price is in the ballpark as some apartment communities, but the amenities and spirit of community at Seneca at Oak Creek is the difference maker. Our one-story residences, most with garages, are comparable in rent to most of the area’s multi-story traditional apartments, so our residents are getting a great value for their money.”

What is on the horizon for Sage Communities?

THIBAUT: In addition to Seneca at Oak Creek, we are in the development phase for similar communities in Cape Coral, Punta Gorda and other suitable locations throughout Southwest Florida.”

This article originally appeared on Fort Myers News-Press: What are the options for affordable housing for seniors