For years developers have been anticipating the needs of the retiring baby boomers by building massive 55-and-over community complexes. But they didn't bet on a slumping economy and a down real estate market that would leave aging Americans unable to stop working and sell their homes. Even those that are already in these communities are struggling to pay their homeowner's dues and condo fees because their retirement accounts are dwindling. The Wall Street Journal covers the growing trend that finds many developments considering opening their doors to younger buyers.

Not everyone is embracing these changes. Some people worry that the mixing of ages would change the nature of the developments bringing more traffic and noise as well as municipal expenses such as schools for younger children. Warm-weather retreats such as Arizona, California and Florida are most affected by this trend. Some are lowering the age requirement from 55 to 45 but still keeping the ban against young children in place. There are also potential legal questions in some cases in regards to zoning since some of these developments have been in zoned specifically for senior housing. Meanwhile prices in these communities, especially in Florida, are plummeting. In the Century Village retirement development in Deerfield Beach two-bedroom condos that would have sold for $120,000 a couple of years ago can now be found for as low as $40,000, a fact that is attracting younger buyers to try and move in.

The problem is that no one knows just how long the current economic situation will last. Some condo developments are trying to wait out the inevitable upswing which will bring baby boomers back to their doorsteps while some developments which had banked on immediate sales, are doing whatever they can to get sales now.

When the time comes for you to move out of your home and into a facility, be it a nursing home, assisted living center, or just a retirement community, get ready to pay a huge rent check.

The estimated average annual cost of living in an assisted living facility starts above $30,000, not including the entry fee that could be over $100,000. Retirement communities that don't offer health care programs may have lower rent, but the waiting list can be long and the entry fees much steeper.

Some savvy seniors have put their savings into a much more lively retirement, like 89-year-old Beatrice Muller, who has spent the last nine years living on the luxury cruise ship RMS Queen Elizabeth 2. There are always physicians on the ship in case of a medical emergency, Muller gets all the food she can eat -- it's much better than nursing home cafeteria slop -- and she's seeing the world and meeting new people all the time. According to Muller, she pays about $7,000 a month, which makes this retirement cost about the same as, or even cheaper than, many high-end retirement communities.

The market is catching on, and now there are whole cruise ships dedicated to full-time residents. To purchase a condo for year-round residency on the Magellan will cost anywhere from $4 - $18 million, but fractional ownership (like time-shares) is available as well, starting under $200,000 for two-week ownership. This ship has 300 ports of call in 150 countries, and features luxury amenities like four fine dining restaurants, an observatory, tennis courts, swimming pools, and golf. Construction is due to be completed on this ship in mid-2010, but you can buy your condo now.

A tip from Luxist reader Dave led me to an interesting story regarding one of our previous estate-of-the-day properties, Point Lookout. Maine Coast Now reports that a Maryland businessman is buying Point Lookout from Bank of America and has plans to turn it into a training center for seniors and executives in the aging business. The 378-acre property has been listed through Landvest for $26.4 million. John Erickson, the potential buyer, is the CEO of Erickson Retirement Communities which owns and operates 20 continuing care retirement communities throughout the United States. By next fall, Erickson hopes to reopen the facility to use as a training facility. Point Lookout also may end up as an educational tour destination for older adults including those living in his retirement communities.

I believe that one of the biggest trends in the luxury real estate market going forward will be retirement residences that bring a variety of services under one roof. In Canada, Amica is the company that seems to be taking the greatest advantage of this growing need. The company has created a series of developments all over Canada. They most recently announced the Amica at Windsor, a $36 million luxury retirement residence of 155 suites which includes a 29-suite Vitalis (assisted living) floor. The building will include a dedicated home theater room, an English-style pub, a private dining room, a spa salon, and a Wellness & Vitality center. Amica at Windsor is the company's 24th retirement community and will be completed in 2009. There are currently nine Amica projects in development and the company offers a variety of options from condo living to assisted living suites and short term programs. Shown above is the Watermark condominiums in Vancouver.