Retirees boost local economy in workforce, housing market
Many cities, including Columbia, actively enhance their community’s livability for retirees, the fastest-growing segment of the population.
According to one recent report, a baby boomer, someone born between 1946 and 1964, turns 50 every 7.6 seconds. Coupled with this increase in the senior population is the fact that many of today’s retirees are more prosperous than their predecessors, enabling them to pick their retirement destinations.
According to the Columbia Chamber of Commerce, 17 percent of Columbia residents are older than 50. And Columbia has been named on many national “lists” recognizing retiree-friendly communities, including those of Consumer’s Digest magazine, Where to Retire and 50 Fabulous Places to Retire.
Judith Stallmann, a professor of agricultural economics, rural sociology and public affairs at the University of Missouri, conducted a 500-home survey, researching retirees’ impact on communities. Although Stallmann’s research took place in Wisconsin, she says her findings are applicable to other communities, including Columbia.
Stallmann found that even though retirees differed in their levels of income, general state of health and recreational interests, all groups generated a positive economic impact on their communities. Specifically, Stallmann said, retirees actively enter a community’s workforce. They increase housing starts and housing values and have a positive impact on retail sales.
Don Laird, president of the Columbia Chamber of Commerce, says that cost of living and accessible, abundant health care are the two factors his organization sees most often as being the top two attractions for retirees who relocate to Columbia.
Betty Tice, a Columbia Realtor for more than 25 years, says that although retirees do make up a healthy percentage of her client base, she is not seeing any specific buying or selling trends among them, in terms of home size or location, in the Columbia housing market. “Some retirees are moving down to smaller homes; some are moving up to larger homes to accommodate visiting children and grandchildren,” Tice said.
However, they have some things in common. Most retirees, Tice said, want main-level master suites and laundry facilities. Most also want a specific place for their home computers. Tice believes that building homes to accommodate the increase in retirees would attract more seniors to the area. She points to Bella Casa condos, developed by Greg and Linda Bartels, which incorporate a concept known as “universal design.”
“Universal design is gaining popularity. It includes: raising electrical outlets to about 18 inches off the floor so you don’t have to bend down to plug something in; doors with handles rather than knobs; and wider hallways and showers to accommodate walkers and wheelchairs,” Tice said.
Stallmann’s research cautions that while retirees typically have a positive economic effect on a community, a “large in-migration of retirees can drive up housing prices, making it difficult for lower-income residents to afford housing or pay property taxes.” Still, Stallmann’s research finds that, overall, “costs attributable to the elderly do not exceed tax revenues attributable to them.”
As the number of retirees in the United States continues to increase, with some reports predicting a population made up of more older people than younger people by mid-century, communities and businesses need to prepare for the unique demands of this segment of the population.
Both Tice and Stallmann agree that Columbia is headed in the right direction, offering many choices in health care, employment and housing.
“Boone County is already attracting retirees because it offers cultural amenities, medical facilities and is seen as something of a hometown for many former students and faculty,” Stallmann said.
Tice says the greatest retiree need that is not being met is a reliable transit system. “The only thing lacking here in Columbia is public transportation, and that is an issue for some seniors,” she said.
Similarly, Stallmann’s research found that while retirees, as a group, typically have a positive economic impact on a community, there are individual problems faced by many seniors, including widowhood, chronic health problems, isolation and a limited social network.