Developing the Equestrian Lifestyle

If “brown is the new black” in fashion, then “horses are the new golf” in residential real estate. Just as the incorporation of high-end, branded golf courses changed the development landscape in the 1970’s, full-scale, high-end, equestrian amenities have become “what’s hot” in residential communities across the United States.

As the real estate market slows across the United States, developers are looking for ways to truly differentiate their properties as a means of increasing sales pace and return on investment (ROI). Capitalizing on the equestrian boom that is sweeping the country (riding is among the 5 fastest growing sports in the U.S.), developers have recognized that the equestrian market is significantly under realized here and, if executed and managed properly, can dramatically help a project’s bottom line. The reasons are simple:

• Equestrian amenities are categorized as agricultural use, which lowers the taxation rate on the property
• They require approximately 1/5 of the land and 1/5 of the cash needed for a golf course, dramatically reducing the up front costs
• They are included in the total acreage count for density purposes, allowing a project to achieve greater density than would be achieved with a golf course
• They represent a land use that is considered low-impact and receives much greater favor from zoning officials and local community members.

There were 1.96 million horse owners in the United States in 2005 (2006 numbers have not been released yet), with another 2 million who actually ride. Together, they create an industry that contributes approximately $39 billion in direct economic impact to the U.S. economy. With a high aggregate net worth, these equestrians enjoy spending their money on their passion – their horses.

Up until the beginning of the 21st century, the “equestrian lifestyle” had two definitions. There were the landed gentry who owned a “farm” or “ranch” with equestrian facilities on the property, and there were those who lived in an urban or suburban home and kept their horse or horses at a boarding and/or training facility. In most cases, this facility was anywhere from 10 minutes to two hours away from the rider’s primary residence.

For many of these equestrian homeowners, neither option was ideal. With a farm or ranch, the disadvantages included:

• The cost (in terms of land purchase and taxes) of a large property
• The capital costs associated with constructing a barn, out door riding arena, indoor riding arena, fencing, and trails
• The upkeep, with long hours and days to do the work oneself or the cost to pay others to mow the grass, paint and repair the fencing, muck the stalls, etc.
• The restricted ability to travel because of the need to care for their horses. The options for this have traditionally been expensive, and potentially unreliable

Most of us board our horses at facilities with dreams of someday owning a place where we can bring our horses home. This is a wonderful dream but the reality is how many of us can afford to purchase a large track of land, build our home, build a private barn, indoor riding arena, out door riding arena, and construct miles of trails? Then pay the staff to tend and maintain it all while we are on vacation or sick in bed? Even if we have the means to attain all this, who will our children play with? Where will they go trick or treating? There are no neighbors around for miles.

Equestrian community living is the latest in the sporty and chic trends of residential lifestyles. No longer is it a dream to see your horses grazing out your bedroom window, or to walk down to the barn for night check. Waking to the smell of fresh timothy and orchard grass, autumn leaves rustling under your horse’s hooves and in winter, an afternoon gallop over freshly fallen snow, neighbors (but not too many) to socialize with and develop a sense of community – perfection!

Today’s country-loving dwellers are looking for countryside without the fuss, and equestrians are engaging in a trend away from public stables and are wanting to bring their horses home. But owning a farm is a lot of work, not to mention the expense of tractors, spreaders, seeding and the burden of being the one ultimately responsible for its operations and maintenance. The pace of today’s busy life is tough, and finding the time to run a farm in addition to the rest of life’s requirements can quickly become daunting.

In recent years, savvy developers and equestrian experts are bringing a new lifestyle to market, where a buyer can live near his or her horse and enjoy riding every day; yet still avoid the logistical and financial burdens of keeping their horses in their backyards. This is a concept whose time has come, as equestrian buyers finally have the best of both worlds.

The result for developers who thoroughly execute this concept? - A record sales pace and premium pricing in communities from Florida to California. As one of our mid-Atlantic clients recently told us, “each time we release another set of equestrian lots, they all have contracts within a week.” Last year, an equestrian community project in Oregon sold more than 200 lots in a first weekend of sales. There is pent up demand, and that is music to developers ears in a soft real estate market.

Recently, Equestrian Services, LLC changed its company tagline to “Developing the Equestrian Lifestyle.” This phrase not only reflects the evolution of our company, it also describes the tidal wave of change impacting the real estate industry we serve.