December 2018 Newsletter

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Greetings and warm wishes from the AARC! We hope you had a blessed Christmas and are making plans to ring in 2019. In these next few winter months, communities will be attending real estate shows and retirees will be making plans to visit over the next year.

In thinking back to what 2018 held for our organization: we were able to host several informative webinars, a successful conference in Daytona Beach with 14 states and Canada represented, and welcome and renew 32 communities and developments in our Seal of Approval program.

We again look forward to being your resource for retiree research, marketing, trends, travel and leisure among other industry news.

Best wishes for a prosperous New Year!


Rachel Baker Chair, The AARC

How Content Marketing Budgets Will Be Spent in 2019

Thorin McGee, | December 18, 2018

While social media and Google Ads are both key marketing channels, content marketing is one of the marketing tactics that makes them go. You need great content to have any hope of ranking with SEO, building a Facebook audience or succeeding in many of the other techniques of digital marketing today. So it’s no surprise that marketers are allocating 27% of their budgets to this tactic. Here’s how they’re spending those content marketing budgets.

Content Marketing Budget Priorities

The content marketing budget is generally not just responsible for creating content, but distributing, managing and measuring it as well.

On average, our respondents reported that a third (32%) of the budget goes to content development, and another 27% to distribution and promotion.

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If you want your content to be successful, expect to spend more than half of that budget between content creation and promotion, and about a third on the various elements of administration.

One thing many brands overlook: When it comes to content creation, 23% of that budget is being spent on agencies, freelancers and other forms of external sourcing. You don’t necessarily need to write it all in-house (although it does pay to develop some respected thoughtleaders in-house, too).

What Content Are They Investing In?

Video, infographics and other kinds of multi-media content get a lot of press, but the backbone of content marketing is still the written word. Blogs and articles are commanding 29% of marketing budgets. That’s 11% more than video, which comes in second at 18%.

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What’s a little surprising about that is that video costs a lot more to create than written content. So that 11% gap actually translates into many times more articles written than videos shot. With the web still moving in a more visual direction, video probably isn’t getting as much investment as it should.And speaking of content that isn’t getting enough investment, podcasts and other audio are at the bottom of marketers’ lists with just 5% of the budget. That could leave a lot of brands very exposed as voice search and voice engine optimization become more and more important. And while some of the predictions around voice search may be inflated, it’s also clear that voice and visual search are trending up at a sharp clip. There’s a real opportunity in voice search for brands to capture the SERPs (or whatever the voice equivalent is) that they may not have in text.

5 housing takeways: What should you expect from home sales in 2019?

Janna Herron, USAToday | December 21, 2018

Screen Shot 2018-12-29 at 7.10.43 AMForget fevered bidding wars and snap home-buying decisions. Slower and steadier will characterize next year’s housing market.

That follows a 2018 that started off hot but softened into the fall as buyers – put off by high prices and few choices – sat out rather than paid up.

Affordability issues will remain a top concern going into 2019, exacerbated by rising mortgage rates. But some of 2018’s more intractable issues will begin to loosen up. The volume of for-sale homes is expected to rise and diversify, while the number of buyers is forecast to shrink.

“For home sellers, they need to recognize those days of frenzied market are over. They must price competitively to sell their home,” said Lawrence Yun, the chief economist at the National Association of Realtors. “For buyers, there will be challenges when it comes to rising interest rates, but they don’t have to make hurried decisions anymore.”

Still, some cash-strapped first-time buyers will simply be priced out, while a cohort of potential move-up buyers will decide to stay in their existing home, make renovations and enjoy their current low, low mortgage rate. Price increases will moderate and everyone in the market will need to adjust.

Finally, more homes to choose from

One of the biggest complaints among buyers in the last several years is that there weren’t enough homes for sale. In fact, the supply of houses hit historic lows in the winter of 2017 and has yet to rebound substantially. That fueled bidding wars, price increases and frustration.

The supply crunch is expected to ease some in 2019 with inventory rising 10 percent to 15 percent, according to Yun. But the increase will be skewed toward the mid- to high- end of the market – houses priced $250,000 and higher – especially when it comes to newly built houses, said Danielle Hale, chief economist of

That’s good news for move-up buyers, but not so much for the first-time millennial buyer. “There’s still a mismatch on the entry-level side,” she said.

Houses in all shapes and sizes

If you’re a first-time buyer, you won’t be completely out of luck if you stay open-minded. If a single-family home is out of the question, consider a mobile home or townhouse as a starter home, both of which are on the rise.

The volume of shipments for manufactured houses – also known as mobile homes –is  expected to finish above 100,000 this year, up from 93,000 in 2017, according to Robert Dietz, chief economist of the National Association of Home Builders. The trend is expected to continue next year.

Screen Shot 2018-12-29 at 7.07.17 AMThese homes are also significantly cheaper than other home types. Not including land costs, the cost to buy a mobile home averages $70,600, compared with $257,900 for an existing single-family home and $309,700 for a new home.

You may also consider a townhouse, an attached single-family home located in a community of homes. Construction of townhomes also is experiencing year-over-year growth and is outpacing the single-family detached home market, Dietz said.

“The market is being supported by millennials moving from renting to their first-home purchase,” he said. “If you’re in a high-cost area with wage and job growth, townhouses are appropriate for entry-level. And they still get that suburban feel with their own front door.”

Affording a home remains hard

Housing values are still expected to increase next year, but not at the gang-buster pace seen in recent years. NAR’s Yun forecasts modest price growth between 2 percent and 3 percent, down from close to 5 percent this year and over 5 percent in 2017.

At the same time, mortgage rates are expected to hit 5.5 percent by the end of 2019. Both factors make it more expensive for buyers to purchase a home. Hale estimates that the expected increase in prices and interest rates translates to an 8-percent rise in the average monthly mortgage payment.

Interest rate trap

Shrinking affordability will convince some buyers – especially first-timers – to sit out the market altogether next year because they can’t make the numbers work.

Screen Shot 2018-12-29 at 7.07.11 AMHomeowners considering selling their home may also stay put because of rising mortgage rates – a so-called interest rate trap. Most outstanding mortgages have an interest rate of 4.5 percent or less, according to a report this year from Black Knight, a data analytics firm.

“They have a nice low mortgage rate, lower than the current rate, so there’s no reason to move,” said Mark Fleming, chief economist of First American Financial Corp., a provider of title insurance. “It’s essentially more expensive to buy their own home back.”

Tax worries linger

The first few months of 2019 will reveal exactly how the new tax changes affect homeowners. One key rule is the new cap on the mortgage interest deduction.

Before, homeowners could deduct interest they paid on up to $1 million in mortgage debt – including interest on home equity loans and lines of credit – reducing their taxable income.

Now, you can only deduct interest on up to $750,000 in mortgage debt. Interest paid on home equity loans and lines of credit is deductible only if the funds were used to pay for home improvements or renovations.

The only taxpayers who will exceed those limits are high-end homeowners and buyers and those with multiple homes with mortgages.

The bigger question mark is if and how the $10,000 limit on state and local taxes deduction – known as SALT – will affect housing markets in high-tax states such as New Jersey, New York, Connecticut and California.

Buyers may be reluctant to purchase homes in those states – or choose a smaller house – if they calculate they will pay too much in non-deductible taxes. “These states may see softer housing markets compared to the rest of the country,” said Yun, if the SALT cap hurts enough homeowners.

Here’s the bottom line

If you’re a seller: Price realistically and be ready to cut the listing price or offer other incentives to get a deal done. “It’s still a seller’s market but not like it was,” Hale said. “Sellers need to be mindful of competition, especially for more expensive properties.”

If you’re a buyer: Don’t worry about going slow when making decisions. “There is less buyer competition and more inventory,” Yun said. “Buyers can take time to find the home that fits into their budget.”

NAHB Urges Congress to Act on Housing Finance Reform

Elizabeth Thompson, National Association of Home Builders | December 21, 2018

NAHBSocialThe National Association of Home Builders (NAHB) today commended House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for working with lawmakers across the political aisle to develop a legislative framework to move housing finance reform forward.

“We support many aspects of the Bipartisan Housing Finance Reform Act of 2018, and are especially pleased that the draft legislation includes an explicit government backstop that assures market participants that the federal government will maintain stability, keep credit flowing and make investors whole in catastrophic circumstances,” NAHB CEO Jerry Howard said in testimony before the House Financial Services Committee.

“NAHB believes an explicit federal government guaranty is particularly important to the continued availability of the 30-year fixed-rate mortgage, which has been a staple of the U.S. housing finance system since the 1930s, and we appreciate that the preservation of the 30-year mortgage is emphasized in this draft bill,” Howard added.

With Fannie Mae and Freddie Mac languishing in conservatorship for the past decade, NAHB has been a strong proponent of comprehensive housing finance reform.

“We look forward to working with Congress to pass bipartisan housing finance reform legislation that will bring the flow of private capital back into the marketplace, ensure creditworthy borrowers have access to mortgage funding, preserve the successful multifamily housing finance framework and maintain the proper level of government support for housing in all economic and financial market conditions,” said Howard.