Realty Times June 27, 2002

Builders Lure Buyers With On-site Recreation
by Al Heavens

When you are lying at poolside in the recreation area of your new-home community, you should be aware that you are also engaged in a bit of "passive salesmanship.''

What your builder is hoping is that the sight of you basking in the sunshine, or working on your tennis game, will convince potential buyers that this development is the place for them.

Visitors drive up to tour the models and see homeowners relaxing by the pool or playing a quick match on the courts. They picture themselves enjoying that type of lifestyle.

For builders, it's a very effective sales tool.

Nationwide surveys indicate that a growing number of builders are devoting space to on-site recreational amenities to meet the increased demand for them by almost every segment of buyer.

Developers of family-oriented communities are cashing in on the trend. Even if there is a park five minutes away by car, a lot of families would rather walk down the street for recreation.

Single-family builders typically donate land or money to the municipality for open space or public parks. Some single-family properties, however, physically and financially lend themselves to on-site recreation facilities more than others.

But most builders find that in situations that depend on two-income families, on-site recreation is both affordable and desired.

When talking about affordability, we don’t mean that the cost of such amenities will be factored into the price of a house. In fact, what the recreational facilities will cost the buyer is simply a $40- or $50-a-month homeowners association fee.

When a builder decides to include recreational facilities in a planned community, he does it right from the planning stage, and the cost of these amenities is just another part of site development.

Recreational amenities also are a major feature of over-55 communities and at developments built around golf courses -- even if they are not marketed to older adults.

However, the chief examples of the trend toward on-site recreational facilities appear to be the highly competitive townhouse and condominium markets, developers say.

Buyers of these homes have long tended to be young and single professional men and women and older empty-nesters. But recently, there has been a noticeable increase in the number of younger married couples with small children, or single parents, builders say.

The rise in the number of younger families is directly related to the increase in the square footage of townhouses. Townhouses came on the scene in the 1970s as smaller and more affordable alternatives to single-family homes. They were designed for singles and as first homes for recently married couples.

That's no longer true. Many townhouse communities have tot lots and playgrounds, and often on a summer's day, the community swimming pool is filled with children.

At some of these communities, there is even a day-care center.

But no matter what profile townhouse and condo buyers fit, they are all looking for the same thing: avoiding the maintenance tasks usually associated with homeownership, such as mowing the lawn, and, instead, making the most efficient use of their free time.

All condominium owners pay a monthly fee to their associations for outside maintenance. But at communities with recreational facilities, the fee also gives them unlimited use of a swimming pool, tennis and basketball courts, and a clubhouse for parties and other activities planned by the condo association.

This is especially attractive to older buyers, who may not be able to get around as well as they used to, so don't want to travel very far from home for recreation. These buyers also don't want to give up the luxury of single-family living and are looking for a place where their grandchildren can visit them and be offered activities.

The kinds of recreational facilities provided at residential communities (if any) differ with the target audience. In addition to swimming pools, families want soccer fields, basketball courts and picnic areas.

Older buyers and singles might want a clubhouse for mingling and tennis courts, in addition to a swimming pool. Some buyers want structured activities -trips or parties.

The proliferation of on-site recreation areas is an example of how changing lifestyles determine what builders build. The successful ones keep up with the changes.

But no matter what kind of community is being built - condo, townhouse, single-family or mixed use - the trend toward on-site recreational facilities is here to stay.

When you are building 150 houses or 400 houses, you are building a neighborhood. And every neighborhood needs a place to play.



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