Marty: A retirement opportunity

One undervalued option for the economic development of San
Benito County is catering to America’s retiring middle-class Baby
Boomers. Based on our convenient location, mild weather, rural
environment and reasonable cost of living
– at least for California’s narrow west-coast corridor – we have
the potential for satisfying the wants and needs of that huge
generation with specially designed age-appropriate housing
projects, amenities, and associated services.
One undervalued option for the economic development of San Benito County is catering to America’s retiring middle-class Baby Boomers. Based on our convenient location, mild weather, rural environment and reasonable cost of living – at least for California’s narrow west-coast corridor – we have the potential for satisfying the wants and needs of that huge generation with specially designed age-appropriate housing projects, amenities, and associated services.

The key to making this strategy work is to have the projects ready when the call comes – something we have not been able to do in the past. The critical step is to encourage companies to engage in the planning process in advance. To do that requires that we get the timing and cost of the development processes, especially the portions related to the California Environmental Quality Act, under control.     

The Baby Boomers are going to usher in economic and demographic changes never seen in this nation. They are the result of the birth boom following WWII, from 1946 through 1964. The U.S. birth rate during the baby boom averaged more than 24 live births per 1,000 population compared today’s estimate of 13.8. Almost 76 million American children were born in that period. Additionally, the increased immigration of those from the same era more than offset the mortality; therefore, the Boomer population was estimated at 78 million in 2006. The oldest Baby Boomers turned 65 on Jan. 1, 2011, and the census bureau forecasts that the living Boomer population will still be 57.8 million strong in 2030.

Many Boomers have been hard hit by the economic downturn because they had substantial net worth in home values; however, the Boomer generation still controls great wealth. According to the Federal Reserve Survey of Consumer Finances, family net worth tops out when the family head is between 65 to 74 years old.

Not every proposal for senior housing will be suitable for our area. I opposed to the Measure S version because its location would have stifled economic growth at the airport, but there is room, especially in the county areas designated for growth under the proposed General Plan. Many Boomers will initially be looking to get out of the snow or away from the hustle and bustle of the megacities or crowded city corridors. They will also be looking for developments and facilities that can cater to their needs as their lives change economically, physically, and socially.

Aging Boomers will require less room, but more health care. Unless there is a complete government takeover of the health care system, that sector will continue as a major contributor to the U.S. economy with many technologically advanced, good paying, and personally rewarding jobs. Those jobs would migrate here with the Boomer population.

Middle and upper class seniors with their stable retirement incomes, small family units, low crime rate, and low impact on county and city services can add significant stability to the local economy by dampening our excessive seasonal unemployment swings. Taxes generated by the land improvements and their year-round economic activity can help fund schools and provide aid for seniors who are less fortunate.       

Each demographic and economic cycle presents opportunities; the trick is to recognize them early and be in position to take advantage at the appropriate time. The city and county have long blamed their economic standstill on the sewer moratorium; well, the entire national economy has been at a standstill for almost 3 years, so everyone is even. We are getting a rare chance to start over; the critical question is, when the starter’s gun sounds are we going to be in the race, or are we going to be left in the gate once again? 

Marty Richman is a Hollister resident.