As Baby Boomers prepare to become senior boomers, the retirement community industry and its financial backers are playing the numbers and forging ahead on developments based on future market potential and not immediate needs.

“There is no question that the demand is increasing across all socio-economic levels for senior housing,” said John Day, president of the DuPage Housing Authority.

While most of the Baby Boom generation is still hard at work, the first wave has reached early retirement age and some have already taken that step. Many experts predict that due to the high demand for experienced workers, boomers will work longer than the previous generation and perhaps hold positions well past the age of 65.

However, whether they like it or not, eventually age will play a part in many future decisions for even the longer-working boomers.

According to the American Association of Homes and Services for the Aging (AAHSA) the population of Americans 65 and older will double to 71.5 million by 2026.

Among those turning 65 today, it is predicted that 69 percent of those will need some form of long-term care, whether in the community or a residential care facility, reports the AAHSA.

In the past it seemed common for retirees to leave the Midwest for a different climate, but now, many are finding that the majority of seniors decide to stay.

“We are beginning to find that more people want to stay where their friends, family and doctors are,” said the DHA’s Day. “We are seeing less of an outward migration today.”

In response to this demographic change, new retirement communities are springing up and other, older facilities are being renovated to meet the demands of the next generation. The types of facilities differ from the very costly to relatively affordable, given the wide range of economic diversity across such a large population, but growth is expected at all levels nonetheless.

Retirement communities can be broken down into different categories. There are independent living communities that require occupants to meet a certain age, 55 for some and others 62. These communities provide activities and a social atmosphere, but few health services.

Nursing homes and assisted living homes provide occupants with long-term health services, while Continuing Care Retirement Communities (CCRC) provide all three atmospheres.

Many facilities are building new units before their existing inventory reaches capacity. Because of the staggering numbers behind the demographics, financial supporters are not hard to find and the investment is viewed as a sure thing.

Construction firms are also taking notice of this growth market. Work may not be directly related to retirement communities, but because of the demographics, many general contractors are investing in upscale condominiums that are marketed towards seniors looking for an active lifestyle.

“Baby boomers are an incredibly wealthy demographic,” said Randy Lindenberg, vice president, project development for FCL Builders, Inc. “We are trying to align ourselves with that market. Condo living is making a comeback now.”

Cedarlake Village Senior Living Community in Plainfield opened its doors in August 2006. It is an independent living community that currently has 186 units, of which 55 are occupied.

However, with projected demand, it is expected that the community will increase to 600 units in the next five to eight years, said Mike Frigo, vice president of Cedarlake.

“The bank wanted to build (600 units) right away,” said Frigo. “They said that the demand will be there. There are 76 million baby boomers.”

Officials at Cedarlake, an affiliate of the Franciscans of Mayslake Village in Oak Brook, decided to hold back and let the community grow at a more relaxed pace. It is the first development of its kind for the Franciscans.

Cedarlake is presented as an “affordable” retirement option that is a step higher than the group’s Mayslake Village, a section 202 public housing facility for low-income seniors, but still below many high-end retirement communities.

“We found that there was a niche demographic of seniors who were too well off to buy into Mayslake, but couldn’t afford to buy into a $200,000 condo,” said Frigo. “Cedarlake provides something in the middle.”

Section 202 housing requires occupants to have an income of $26,000 or less.

Cedarlake is based on monthly payments, but does not follow the typical CCRC set-up that requires a down payment. In many cases that down payment is fully refundable, or it will go toward assisted care, but Frigo points out that many seniors can’t afford the upfront cost.

The facility offers 1-2 bedroom units, with monthly fees ranging from $1,449-$2,199.

Friendship Village in Schaumburg recently opened Bridgewater Place, a 170-unit building that has made the 30-year-old facility the 15th largest retirement community in the nation. Seventy of the new units are currently filled and officials expect the rest to go quickly.

“We expect to be 95 percent full at Bridgewater Place within a 20-month period,” said Cathy Ritter, vice president for marketing and communications for Friendship Senior Options in Schaumburg. “When it is full, we will have more than 1,000 residents.”

Ritter said that the next step for the facility is to renovate much of its housing to provide top quality amenities for the next generation.

“We are still serving the G.I. generation, but we have to position ourselves for the next generation,” said Ritter.

The next generation positioned to enter retirement homes is actually the Silent Generation, or those born from 1925-1942. While the expansions and upgrades are in preparation for the influx of Baby Boomers, the reality is that most won’t be moving into such communities for some time.

“Most seniors don’t enter a retirement community until they are in their 70s,” said Randalynn Kaye, director of marketing for Wyndemere Senior Living Campus in Wheaton. “We target 62 and over, but most don’t come until their mid-late 70s.

“Baby Boomers may work longer, which could delay this kind of lifestyle even more. We may not see them until their 80s. Today’s 60 is yesterday’s 40.”

Wyndemere is an all-encompassing campus that provides independent, assisted and nursing care and is affiliated with Central DuPage Hospital. The community of just less than 300 is not planning for expansion to meet the next generation, but like Friendship Village, it will undergo some renovations in many of its units to update the 14-year-old facility.

Monarch Landing in Naperville is approaching its first anniversary and has 150 residents.

However, the community rests on 78 acres and is poised for substantial growth. Recently, it received approval from both Warrenville and Naperville to accommodate 1,500 tenants.

“Ultimately, if the market responds, we could see 2,000 residents living here,” said Patty Luessenhop, executive director.

Retirement communities are a choice of lifestyle, and it is that choice that the majority of facilities see as their competition. They all have separate programs and benefits, but because of the potential in the industry, executives aren’t looking at each other as competition.

“It is not really competition between retirement communities,” said Monarch Landing’s Luessenhop. “There are a lot of wonderful senior living options. Our competition is homeownership and people who want to continue that lifestyle.

“Our challenge is to get people who want to eliminate the hassles of homeownership and want a more social environment to see this kind of lifestyle.”

One way to do that is to market what matters most—health.

“People who come here will live an average of seven years longer than most actuaries’ predictions,” said Wyndemere’s Kaye. “It is a healthier lifestyle.”