P age A4
J uly 31, 1996 • T he P ortland O bserver
(Elfe
^ In r tla n b
w b s e ru e r
Growing with the greying of America
Recently, BUILDER Magazine
recognized the country’s three fast­
est growing home building compa­
nies of the past decade. The company
producing the largest gains was a
business serving the nation’s fastest
growing market segment - seniors.
The entity is Del Webb Corporation,
which introduced America to retire­
ment living in I960 with Sun City,
Ariz
Founded in 1928, Del W ebb C or­
poration reorganized in 1987 to fo­
cus on home building. The company
said goodbye to its hotels, casinos,
recreational properties, commercial
real estate management and com­
mercial construction activities. The
home building plan was to run paral­
lel with the greying of America and
serve the market's ever increasing
desire for a healthy, active retire­
ment lifestyle. The strategy has prov­
en successful as the company this year
surpassed one billion dollars in reve­
nues lor the first time in its history
In its fiscal year ended June 30,
1996. the New York Stock Exchange
company not only set new records
for home sales, revenue and operat­
ing earnings, it surpassed many other
important milestones
In 1996 the company sold its
100,000th home. But more impor­
tantly, it also welcomed its 50,000th
Sun City buyer (nationwide) to its
Sun City Palm Desert community in
southern California. The home was
purchased by Dick and Betsy Lewis
of Palm Desert The Lew is’s retired
to the desert resort area in 1988 after
dual 35-year careers as banking ex­
ecutives. As bankers, they often pro­
vided the financing for new home
neighborhoods and spent consider­
able time walking through homes
under construction. “We were im­
pressed with the quality construction
and the value of Sun City Palm Desert.
Now that we re settled we re think­
ing about taking up golf!" Betsy
Lewis said.
From one active adult community
(Sun City West near Phoenix) in
1986. Del Webb has grown into a
coast-to-coast builder. During the
past 14 months, the company has
celebrated the grand opening of three
new Sun Cities near Las Vegas, Nev.;
Hilton Head, S.C.; and Austin, Tex­
as, and in October will open Sun City
Grand, near Phoenix. That brings the
Sun City family to 10 communities.
And these are not small communi­
ties. The typical Sun City encom­
passes thousands of acres, with thou­
sands of single family homes, golf
courses, recreation complexes, shop­
ping centers, churches and more.
They are known in the development
industry as master-planned commu­
nities.
How popular are these communi­
ties? Consider that W ebb's newest
Sun Cities near Hilton Head and
Austin have both already surpassed
500 sales. "The sales pace of new
homes at Sun City Hilton Head is
unprecedented," said Paul Cifaldi,
president of Hilton Head Market
Research, a firm which tracks re­
gional real estate trends. “Del Webb
has created the right product for a
market that sees this area as a great
place to live." The 5,600-aere com ­
munity is expected to have an eco­
nomic impact of approximately $6
billion in construction spending,
wages and resident purchases over
the next 20 years.
Few companies under­
stand the lifestyle needs of
the retirement market
b e tte r than Del
Webb. Focusing
on the continuing
growth of the ma­
ture
m ark et
(A m ericans age
55-64 will grow
from 2 1 million to
42 million people during the next 25
years) the company recently launched
a bold research initiative to better
u n d e rsta n d the n ation s Baby
Boomers, the first of whom turned
50 this year A few of the findings
point toward a potentially prosper­
ous future for the company:
- 18$ say they're planning to move
to a different state at retirement which
is twice the number o flo d ay 's retir­
ees who relocate.
- 7 0 $ indicated they expect to
work, at least part-time, in retire­
ment.
Most expect to retire by age 63.
Webb has focused its growth in
areas where retirement populations
are booming. One such example is
Las Vegas, Nevada. The influx of the
senior population in this gaming
mecca accounts for 25 percent of the
annual new residents. Since 1989
Del W ebb has sold more than 6,(MM)
Sun City homes in that area In Sep­
tember, 1995, the company intro­
duced Sun City MacDonald Ranch,
its second Las Vegas-area communi­
ty which was greeted with immediate
acclaim. This smaller, more afford­
able Sun City (prices begin in the
$80’s) has sold 470
hom es to a c tiv e
adults in less than 10
months. In total, the
company sold more
than 1.200 Sun City
homes in Las Vegas
during its last fiscal
year.
With the coming
Builders Watch Mortgage Rates
“ We may start to see the numbers
come down a bit in July and August,
but not a lot,” predicted economist
David Lereahofthe Mortgage Bank­
ers Association. “This is a healthy
housing market.”
During June, 30-year, fixed-rate
mortgages averaged 8.32 percent, up
from 8.09 percent in May and match­
ing the average in April 1995.
By last week, they had risen to
8.42 percent, meaning the monthly
payments on a $100,000 mortgage
would be about $ 100 more than they
would last January, when rates aver­
aged 7.03 percent.
Still, new home sales have re­
mained strong, hitting a 10-yearhigh
in May. That demand has boosted
starts during the first six months o f
the year 13.5 percent above those of
the same period o f 1995.
“So far, the strong jo b market and
strong consumer confidence have
been w inning the tug o f war against
higher interest rates,” Neely said.
Paul T aylor, eco n o m ist with
A merica’sCommunity Bankers, also
noted that even at 8 percent, mort­
gage rates are still “at a generational
low for a lot o f people." As recently
as 1990, they topped 10 percent.
But a National Association o f
Home Builders membership survey
suggests the market may be leveling
off. Its Housing Market Index slipped
in July to 60, one point lower than in
June and the third straight dip.
“The gradual decline occurs as
pent-up demand from the unusually
severe winter months runs its course
and home buyers begin to slow the
pace o f purchases as a result o f ris­
ing interest rates,” the association
said.
And appi ¡cations for building per­
mits, a gauge o f builder confidence
and future activity, slipped 2.5 per­
cent in June to a 1.42 million rate. It
was the second straight decline.
Single-family starts shot up 7.4
percent to a 1.225 million rate, wip­
ing out a 5.6 percent loss a month
earlier. It was the highest rate since
1.23 million in April 1994.
Construction o f apartments and
condominiums, often volatileand not
as sensitive to interest-rate changes,
plunged 20.3 percent to a 255,000
rate. It had risen 6 percent in May.
Regionally, starts rose 4.6 percent
in the West to a 366,000 rate and 3.8
percent in the South to 688,000
But they fell 6.2 percent in the
Northeast to a 122,000 rate and 4.4
percent in the Midwest to 304,000
for people of all ages. Del W ebb's
Coventry Homes, its conventional
home building subsidiary, expanded
into a new market and now builds in
northern, central and southern Ari­
zona, Nevada and southern Califor­
nia. Trovas, a new higher-end, semi-
custom home building division was
also unveiled with its first neighbor­
hood nestled near the McDowell
Mountains in Scottsdale, Ariz.
Del W ebb Corporation is the na­
tion's leading builder of active adult
communities for people 55 and bet­
ter with Sun City communities near
Phoenix and Tucson. Ariz.; Las Ve­
gas, Nev.; Palm Desert and Roseville.
Calif . Hilton Head. S.C. and G eor­
getown, Texas.
Compact Jerico goes beyond the basics
By Associated Designs
Builders quickened the pace o f
home construction in June, but there
are signs that high mortgage rates
will cause them to tap on the brakes.
“It won’t be a slump, but we won’t
have the breakneck pace we saw dur­
ing the first halfofthe year,” predict­
ed Fannie Mae economist Eileen
Neely. “One indication o f a slow­
down already is showing up in (de­
clining building) permits.”
But in June, housing starts rose
1.3 percent to 1.48 million at a sea­
sonally adjusted annual rate, higher
than the 1.45 million rate many ana­
lysts had expected. Single-family
construction — 80 percent o f total
starts — reached a two-year high.
And starts in April and May were
even stronger than originally esti­
mated. They totaled 1.51 million in
April, rather than 1.50 million, and
I 46 million in May, ratherthan 1.43
million.
The picture in June was mixed,
however While overall starts were
up in the South and West, they si ipped
in the Northeast and Midwest. And
the volatile multifamily sector post­
ed a double-digit decline.
Many analysts expect housing
starts to begin to slow th is summer as
mortgage rates continue to rise.
of a new millennium, the corporation
continues to explore new markets for
its community development, includ­
ing some non- traditional retirement
destinations. Forexample, Del W ebb
is actively researching the possibili­
ty of establishing the first cold-weath­
er- climate Sun City in Illinois. The
company will carefully weigh con­
sumer interest, community support
and land availability before making a
final determination on whether to
proceed with a project there.
While W ebb remains focused on
its Sun Cities, the company has also
broadened its home building base
This past year saw continued success
at Terravita. a golf and fitness com ­
munity in Scottsdale. Ariz designed
The Jerico is a small (1500+
square foot) house that covers all the
basics, and then some. Stepped win­
dows, a brick planter and multiple
rooflines add eye appeal to the
ranch-style exterior. Economical to
build and easy to m aintain, the
single-level Jerico is well-suited to
the needs of young families or re­
tirees.
Gathering spaces in this three-
bedroom plan include a living room,
a dining room, and a family room.
Wide windows in the dining room
and living room face the street. Both
of these rooms are naturally bright,
and the ceiling in the living room is
vaulted which gives it a sense of
spaciousness. The vaulted family
room is bright as well. It has two
windows on one side and wide slid­
ers at the rear. A long plant shelf
spans the opposite side of the room.
Outside there is a deck that is
ideal for outdoor dining. Most of the
deck is covered. A long eating bar
joins kitchen and family room.
Appliances are built in, and
utilities are tucked in an alcove
that’s close to both kitchen and ga
T h e J e r ic o
rage. Direct access from garage to
kitchen is convenient for carrying
in groceries.
The master suite has his-’n’-hers
closets, one of them a walk-in.
Guess who gets the larger one?
Other amenities here include deck
access and a private bathroom with
dual vanity and a large shower.
Secondary bedroom s in the
Jerico are identical, thus eliminat­
ing arguments about who gets the
better room. Linen and storage clos­
ets flank the doors, while the small
bathroom across the hall is outfit­
ted with a com bination tub and
shower.
For a review plan, including
scaled floor plans, elevations, sec­
tion and artist’s conception, send
$15 to Associated Designs, 1100
Jacobs Dr., Eugene, Ore. 97402.
Please specify the Jerico 30-042 and
include a return address when or­
dering. A catalog featuring over 170
home plans is available for $ 12. For
more information call (800) 634-
0123.
© 1996 Associated Designs. Inc
# 3 0 -0 4 2
Living Area
1515 sq.ft
Outside Dimensions
53’ X 42'
LISCENSED IN OREGON SINCE 1975
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EL
rmls
O
Thinking o f
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