2021 Market Drivers

  • Global Focus on Health, Prevention, Wellness and Immunity
      • COVID has brought into focus the ultimate importance of a strong immune system and the many components that play into the body’s ability to fight disease, most of which are lifestyle-driven. As attention has grown around immunity,  health and wellness have taken center stage. This creates a massive groundswell that will help drive the success of model health and wellness communities.
  • Distressed properties coming onto the market
    • Many resort properties are distressed as a result of the pandemic. If a property with the basic infrastructure for elements of the model can be acquired for cents on the dollar, this reduces the initial basis of establishing the first community. Sufficient adjacent land and appropriate zoning flexibility would be necessary to allow for the full extent of the residential model to be reached. 
    • Alternatively, stalled developments, distressed towns and islands are becoming more readily available after the onslaught of COVID and may represent ideal incubators for this model community.

  • Significant consumer shift toward smaller communities
    • A major exodus from urban living to smaller communities has occurred as a result of the pandemic. People are looking for more natural and healthy settings AND community living. Cities are seeing unprecedented population swings away from dense urban living environments.

  • wellness real estate premiums

It has been demonstrated in the U.S. that homebuyers and renters will pay more for built environment features such as those detailed in the ROOTS model. These price premiums range from:

  • 3-12% for nearby open space, greenbelts, and conservation areas; 
  • 4-20% for nearby parks and multi-use trails
  • 5-15% for recreational programming and amenities within the community

Additionally, communities featuring mixed-use, transit-oriented, traditional neighborhood designs have demonstrated home price premiums of 5-20% across the United States.

This is further illustrated with premiums between $4,000 and $34,000 having been attained for above-average walkability (a 1% increase for every 1 point increase in the neighborhood’s walkability score).

An example of a community with many of the elements of the Roots model is “Serenbe” in Georgia, U.S. Homes have been achieving a 37-55% premium over other developments in that area.

  • Growing need for more “community” where we work, live, play and retire
    • The shift to virtual work environments is driving a growing need for human connection in other aspects of our lives. Elements such as our Social Club concept play strongly into this model to meet that need for a community where we live and work. 
  • Increasing demand for sustainable living solutions
    • As consciousness rises around the unsustainable nature of the lifestyle we have built since the advent of capitalism, people are increasingly looking for ways they can maintain the basis of their lifestyle while balancing its impact.
  • Massive impetus toward building strong immune systems
    • The global pandemic has educated the masses on the importance of the immune system. Building a strong immune system requires a holistic approach which our model embraces by underwriting strong nutritional foundations (organic farm onsite), exercise principles (many options indoors and outdoors), expanding the microbiome (encouraging participation in farm activities and and outdoor recreation), and an integrative approach to health and wellness (integrative wellness center onsite).
    • The factors that can depress our immune system include:
      • Older age: As we age, our internal organs may become less efficient; immune-related organs like the thymus or bone marrow produce less immune cells needed to fight off infections. Aging is sometimes associated with micronutrient deficiencies, which may worsen a declining immune function.
      • Environmental toxins (smoke and other particles contributing to air pollution, excessive alcohol): These substances can impair or suppress the normal activity of immune cells.
      • Excess weight: Obesity is associated with low-grade chronic inflammation. Fat tissue produces adipocytokines that can promote inflammatory processes. Research is early, but obesity has also been identified as an independent risk factor for the influenza virus, possibly due to the impaired function of T-cells, a type of white blood cell.
      • Poor diet: Malnutrition or a diet lacking in one or more nutrients can impair the production and activity of immune cells and antibodies.
      • Chronic diseases: Autoimmune and immunodeficiency disorders attack and potentially disable immune cells.
      • Chronic mental stress: Stress releases hormones like cortisol that suppresses inflammation (inflammation is initially needed to activate immune cells) and the action of white blood cells.
      • Lack of sleep and rest: Sleep is a time of restoration for the body, during which a type of cytokine is released that fights infection; too little sleep lowers the amount of these cytokines and other immune cells. 
  • Growing momentum in the wellness travel space
    • Wellness travel is one of the few areas where travel has expanded during the pandemic. Program demand for wellness travel has expanded in a shrinking travel sector.
  • Demand growth for retirement solutions 
    • Demand for retirement options that go beyond basic accommodations and activities are growing exponentially. Studies have shown that being a part of a healthy, diverse and vibrant community helps people age gracefully and enjoy a fulfilled lifestyle for longer. By integrating generations and removing age related stigmas (both upwards and downwards), this community can model a progressive approach to multi-generational living.
    • Over the next decade, annual growth in the total Australian population is expected to average 1.5%, whereas annual growth in the population aged 65 and over is expected to average 2.9%.
    • Investing in senior living communities in all their forms has stayed relatively steady as the economy shifts up and down, with typically a double-digit  return on investment. This is often higher than other kinds of real estate, and they remain steadier during economic up and downturns.
    • With more retirees choosing senior living communities over assisted living facilities or nursing homes, the need for this kind of investment will continue to grow over the next two decades. Investing in a senior living model such as this isn’t just good for your portfolio in the short term. It is a way to invest in the kind of infrastructure you’re going to need when you finally reach those golden years.

wellness real estate premiums

It has been demonstrated in the U.S. that homebuyers and renters will pay more for built environment features such as those detailed in the ROOTS model. These price premiums range from:

  • 3-12% for nearby open space, greenbelts, and conservation areas; 
  • 4-20% for nearby parks and multi-use trails
  • 5-15% for recreational programming and amenities within the community

Additionally, communities featuring mixed-use, transit-oriented, traditional neighborhood designs have demonstrated home price premiums of 5-20% across the United States.

This is further illustrated with premiums between $4,000 and $34,000 having been attained for above-average walkability (a 1% increase for every 1 point increase in the neighborhood’s walkability score).

An example of a community with many of the elements of the Roots model is “Serenbe” in Georgia, U.S. Homes have been achieving a 37-55% premium over other developments in that area.

Source: Global Wellness Institute