I just returned from Urban Land Institute's annual meeting and the semiannual meeting of the Recreational Development Council. Here's some of the news:
No one is enjoying robust sales, though a few, like Martis Camp in the Sierra Nevada, have seen good sales in 2011.
The bottom fishing is still going on with prices in Vail; some are even 30+% below 'back then'. Second-tier resort properties are discounted higher. The worst possible holding is entitled land without improvements. It's currently priced as the agriculture land it once was.
Buyers of resort projects, the big lot sales deals, have mainly been the very wealthy who are buying and holding. Interestingly, the buys, both personal and institutional, were at 20-30% of debt in 2010; in 2011, they are lower, like 10-15%. So, the sellers are realizing how bleak the landscape is. And some of the institutions are facing reality.
Consumer research [presented by Peter Yesawich of Y Partnership and Brooke Warrick of American Lives] validates that permanent changes have occurred with the wealthy post September 2008. There is a greater inward focus versus conspicuous showing off, and more emphasis on family. For sure, the youngest boomers and the Gen Xers take their kids everywhere, as we all have seen. And, as we know, everyone is placing more emphasis on value.
So, the wealthy are cutting back on the conspicuous areas, but not cutting out their interest in those things that benefit their family. Then, there's the multi-generational movement that continues to pick up speed.
Our workweeks have increased to 48 hours, the highest in the world for tier-one economies. And work is not ever left behind. We in the business need to provide the facilities to efficiently stay in touch. Then, there's personalization that we all are getting more and more used to. We want everything our way, and can usually get it. What does that say for vacation homes, use plans and amenities and activities?
Walking and bike paths— the least costly amenity (or no cost, such as in Whitefish, where the city has supplied them)—are among the most valuable amenities for reasons of health and sharing time. The happiest folk are those who have human interaction for at least six hours a day.
Peter continues to be a major fan of shared ownership as fitting all the trends of vacationing Americans. One reason is that buyers of resort property do not believe in appreciation anymore, so the shared product, bought for use, makes the most sense. Let it roll, Peter!
