Baby Boomers Raise Demand for Houses in ADKS

There is no question that the popularity of second homes, especially in the Adirondacks, has increased. After our discussion in class, I came across an article in Strictly Business Magazine entitled “Retirement and Second Home Market Driving Adirondack Real Estate.” In this article, the author, Heather Sackett, argues that the Adirondacks have experienced the first hand the effects of the Baby Boomers’ contribution to the current second-home housing boom.

Although tourism has long been the economic driver of the region, the Adirondacks have recently experienced a rise in the number of people who want to live here. With a thriving real estate market that shows no signs of slowing, suddenly a house in Lake Placid has doubled its value in just a few years. As Onno mentioned in class, there was a dramatic increase in demand for houses in the Adirondacks following September 11^th. Jim McKenna of the Lake Placid Chamber of Commerce attests: “We saw an increase in visitors after September 11^th. The Adirondacks are perceived as a safe destination. People from metropolitan areas are looking for a safe place with natural appeal that is not crowded.”

Although this increase in demand for houses is great for the economy, towns and villages, such as Lake Placid, have become victims of their own success by forcing locals out of the community. Places such as, AuSable Acres, Wilmington and Bloomingdale, once thought of as backwoods, have become hot spots for young couples and families, mostly because they are affordable. According to Roby Politi, former mayor of Lake Placid and head of Merrill Thomas Real Estate, just a few decades ago about 50% of home purchases in Lake Placid were second homes. Politi now estimates that number is closer to 85%. “The buyers are people from outside the area,” he said. “The second home market is the primary market. It’s driven by people who are successful elsewhere and want a getaway.”

There is no question that development is necessary to meet the demand for second-homes. Moreover, development stimulates the economy by creating jobs and new infrastructure. However, Politi believes that “Overgrowth and development need to be replaced with smart development” in order to make it sustainable into the future. The area in the Adirondacks is finite, and at the current rate at which people are buying houses, development must shift its approach. After all, what are we supposed to do when there is no more room to develop in the Adirondacks? Will it be forever wild?

(http://www.sbmonthly.com/?p=1636)