In a finding that could have a profound impact on the future of homes and communities designed for the growing legion of seniors, nearly half of all adults expect to continue working as they move into their retirement years, according to new research from the nation's leading developer of active adult communities. Only 13 percent of the 1,361 44-to-56-year-olds questioned by Harris Interactive for Del Webb's annual Baby Boomer Report said they will not work once their careers are over.

Of the remainder, 44 percent said they weren't sure whether they would work or not. But 43 percent said they most definitely would.

According to the Census Bureau, about 41 million people were in the 50-69-year-old age bracket in 2000. By 2015, Census says that number is expected to almost double to 77 million.

For the most part, seniors told surveyors they will work because of the mental stimulation employment provides. But a significant 46 percent said they'll need the money because their savings and retirement incomes won't be enough to live on comfortably.

The finding is reinforced by recent government figures that show the number of persons 55 and older now in the work force or actively seeking employment has been increasing slowly but steadily since the turn of the century.

Even though more people are out of work overall, as is typically the case during an economic downturn, 35.3 percent of all seniors age 55-64 are working or looking for work, according to the latest Bureau of Labor Statistics survey. That's up from 31.9 percent in June 2000.

The labor-force participation rate also is growing for those age 65 or older, from 12.5 percent three years ago to 13.8 percent as of June 2003. The fact that seniors are more likely to continue working means builders who cater to them are going to have to rethink their floor plans to provide work space and home offices, says Dave Schreiner, vice president of active adult development for Pulte Homes.

Del Webb, a division of the big Bloomfield Hills, Mich.-based builder, is the nation's leading developer of active adult communities. Some 167,000 people live in the company's 25 properties.

Until now, builders who ply their trade in the move-down sector have pretty much shunned the idea of including a home office, even though it is a pronounced trend in the move-up market.

After all, if Grandma or Grandpa needed work space, they could simply convert the rarely used second bedroom or perhaps the den.

But Schreiner says to continue to ignore the need will be a mistake that could send would-be buyers to the competition.

"More discreet rooms" and perhaps even more space are necessary to accommodate buyers who continue to work, either as volunteers or in full or part-time jobs that bring home some extra bacon, he says.

And even though older seniors are thought to be electronically intolerant, the Pulte executive says those still in their 50s are computer savvy. Therefore, he warns, wiring for high-speed Internet service, multiple phone lines, intercoms and, of course, security are now a must.

Schreiner also suggests that seniors' communities are going to have broaden their already wide social offerings to oblige working residents. "Not only do the houses have to change, so do the activities that are offered," he says.

Seniors' communities like those built by Del Webb are famous for the social infrastructure of clubs and programs that keep residents occupied. Typically, though, operations are limited to daylight hours.

Now, with more and more folks working, Schreiner says community managers will have to schedule more evening and weekend meetings and events.

"If you are retired, you've got all the time in the world to match your activities to a time that suits you," he explains. "But if you are working, you have to find free time, and we have to accommodate that."

In another major shift forced by the trend to continue working, Schreiner says future adult communities will have to be located closer to mega employment centers and not just in areas with warm and balmy climates.

"We will continue to have destination-type communities near the ocean or in the desert," he says. "But we also have to build places that are oriented toward commerce. If you are in the middle of the woods someplace, it's pretty hard to keep working."

Ironically, the need for builders to come to the boomer market instead of asking the market to come to them is occurring at a time when more seniors than ever say they are willing to relocate.

In the 1999 Del Webb study, just 31 percent of the respondents (age 48 to 52 at the time) said they planned to move to another residence for retirement. Now, 59 percent said they would move to another home.

Moreover, 31 percent said they'd move more than three hours away from the current location.

"This goes against conventional wisdom," says the Pulte executive. "We and many other organizations have historically put the number of those moving three hours or more under 20 percent. This bodes well for our business and the housing industry in general."

Of those who expressed a willingness to move, about a third said they'd pick a place more than 100 miles away from where they live now. The other two-thirds would move, but only within a 100-mile radius.

Florida tops the list of favored places, with 21 percent of the boomers who said they'd travel the greater distance picking the Sunshine State as their first choice for relocation. Arizona is second at 18 percent, followed by 10 percent each choosing North and South Carolina.

Other top picks include Tennessee, Colorado, Virginia, Texas, New Mexico and California.

But whether the rising tide of seniors stays put or moves away, many of them are "going to have to reload their coffers," Schreiner says.

"Reality has hit home. The desire to retire and pursue their dreams is still there. What's changed is their circumstances. All the wealth they thought they had in the 1990s has been called into question. It's an interesting dichotomy."

Published: August 13, 2003

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.