By Lynn Walters, Globe Correspondent | June 9, 2005
W
hen George and Rita Lynch sold their Andover, Mass., Colonial last fall after 22 years, they thoroughly researched the best place to retire.
They checked out communities in Virginia, the Carolinas, and Georgia on the Internet and visited Maryland, where one of their adult children lives. But they ultimately settled on a locale touted for retirees in various surveys: New Hampshire.
''We even looked at Florida," Rita Lynch said from the East Kingston condominium where the couple moved in October. ''But I'm not really much for the hot weather. We also looked in Massachusetts. What they had didn't compare, not in space or amenities, and the price was horrendous in comparison."
Retirees, including many from Massachusetts, are giving New Hampshire a closer look.
For Rita Lynch, a retired marketing executive, and George Lynch, a former federal government financial manager, the move to an active adult community simplified their lifestyle, while allowing them to be close to family and doctors. Many retirees are attracted to New Hampshire's housing costs, which are far lower than those in the Boston region, and the state's tax-averse climate.
Adding to the allure is a boom in housing for those 55 years and older. Many builders find it easier to obtain approval for these age-restricted developments than for traditional housing, due to communities' concerns about the expense posed for towns by new housing that attracts families with school-age children.
Active adult communities have been popular in New Hampshire for the last three years, said Jane Marie O'Connor, chairwoman of the 50-Plus New England Housing Council for the National Association of Home Builders. These communities usually target 55- to 74-year-olds who aren't ready for traditional retirement homes. The units are often condominiums and feature a central clubhouse, a quiet atmosphere because of the age restriction, and fewer maintenance demands, such as having no lawn to mow.
Along the east-west Route 101 arc in southern New Hampshire, O'Connor's research identified 133 active adult communities, either existing or under development, in 35 towns.
A national trend for 25 to 30 years, active adult housing has skyrocketed in New England over the past three to five years, driven by consumer demand, said O'Connor, who is also publisher of Mature Living Choices, a 55+ lifestyle resource guide in the six New England states.
New Hampshire pulls 70 to 80 percent of adult community residents from outside the state, many from Massachusetts, O'Connor said. Comparable condos in Massachusetts usually cost at least $100,000 more than in New Hampshire, she said.
New Hampshire sites, including Portsmouth, have popped up on various retirement haven lists, including the American Association of Retired People's top 15 retiree dream towns and Money Magazine's ''Best Places to Retire" in 2003. A 2004 book, ''Retirement Places Rated, Sixth Edition," by David Savageau, cites several New Hampshire communities, including Lake Winnipesaukee, Hanover, and the Monadnock Region.
But communities may discover that seniors are not as much of a bargain as originally believed, according to a February report from the New Hampshire Center for Public Policy Studies, which detailed the financial impact of senior property tax exemptions.
Demographer Peter Francese, who worked on the study, said towns need to evaluate whether they are being rigorous enough in seeking proof of need when issuing these exemptions.
Elderly property tax exemptions are given to seniors who meet certain town-set criteria, based on income and assets. Rye, Exeter, and Hampton Falls are among the New Hampshire towns with the most generous exemption standards, according to the study. In Rye, for example, property owners over the age of 65 have qualified for exemptions totaling more than $11 million in 2005. Exemptions vary by age, but are tied to income and a person's net assets, with 65-74 year-olds getting a $75,000 property tax break and 80 and over receiving $105,000 exemptions.
''What New Hampshire has structured is that people over age 55 can live almost free, because there's no income tax, no sales tax, and, if you play your cards right, almost no property taxes, either," said Francese, who lives in Exeter, N.H. ''What these housing policies have done, already started to do, is artificially age the population much more rapidly than on a normal basis."
During the past four years, New Hampshire saw a net population gain of 54,000 in the 45-to-64 age segment, including 31,000 in the 55-to-64 age group, according to Francese.
During the same period, the state had a net loss of 16,000 in the 25-to-44 age range. Younger residents have been squeezed out by housing that is either too expensive or age-restricted, Francese said.
The population shift may have economic implications beyond property tax exemptions, he said.
''One doesn't need a PhD in demographics to know in another 10 years those 55-to-64 will be 65-to-74, putting more stress on the healthcare system," said Francese. ''Since they live in pretty affordable housing with financial encouragements to stay, presumably not too many will leave."
The Lynches chose a condominium at Maplevale@Cricket Hill, by Lewis Builders Development Inc. of Atkinson. Part of a 106-unit condo project in East Kingston, the development has only seven units remaining, all of which are in the $250,000 to $300,000 range, said saleswoman Linda Gauvin.
In business since 1958, Lewis Builders recently completed age-restricted condos in East Kingston and Kingston and is now planning a 116-unit complex in Hampstead.
East Kingston's growth-control ordinance limits building permits annually to 2 percent of existing houses. The town has issued 15 permits for single-family houses in 2005, said town administrative assistant Cheryll Hurteau. In about the past two years, however, builders have constructed 153 units of over-55 housing, which is not restricted by the ordinance, Hurteau said.
To some baby boomers, who are pursuing new careers after retirement, a state's economic climate can be as important as affordable housing and property tax exemptions when choosing a new home.
After retiring from the Massachusetts Department of Environmental Protection, where he worked for 31 years, Donald Steele made a full-time career out of his antique hobby and moved to Atkinson, N.H., with his wife, Corinne.
Steele runs his business, Delightful Relics Antiques, from his home, selling on eBay. Since his business contacts were local, he knew he had to stay in the area. With the move, he exchanged a 1,500-square-foot duplex on a 5,000-square-foot lot in Belmont, Mass., for a 3,000-square-foot Colonial with a four-car garage on 2 acres.
''Florida's a totally different game," Steele said. ''Besides, for someone who's grown up in New England, who wants a place that's flat and humid all the time?"
The boom doesn't show any signs of slowing down, said Portsmouth real estate appraiser Steven H. Berg, who conducted a study of over-55 communities.
''Maybe somewhere warm and sunny is first choice, but where the grandchildren are is second choice," Berg said.
The cost of living in New Hampshire can make that choice much easier, according to Francese.
''Yeah, it may be cold, but it's breathtakingly cheap to live if you're over age 55," Francese said. ''And you can always go someplace else in February, March, and April, which is what many do."
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