House-rich, cash-poor seniors lead exodus to upscale rentals

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

What's an attractive living option for an elderly homeowner who is house rich and cash poor, yet cannot afford to sink all of the equity of the family home into a newer, maintenance-free house or condominium with people his/her own age? Builders and developers in many areas of the country have begun to explore Active Living Rental Communities (ALRCs), upscale apartment buildings with elegant entries and comfy common sitting areas in neighborhoods where rental housing would accommodate longtime local residents who no longer choose to own. "There are a lot of people out there who want to move out of the responsibilities of maintaining the home they have lived in for decades," said John Rhoad, president of RMJ Development Group LLC. "They want to move and they feel they are still young enough to move – maybe even more than one or two more times. They want to stay close to their familiar surroundings but they don't want to take all money and sink it into a home that costs as much a...