Crossroads: The old and the new
by Glenn RittTradition and charm remains its No. 1 asset, but second-home owners, new businesses and technology alter Chatham’s economic landscape.
Janice Kurleycheck never was an entrepreneur before. Now, the former nurse not only owns two thriving businesses in Chatham, but she also represents an economic and demographic crossroads between the community’s past and future.
One of her companies, At Home on Route 28, sells high-end used furniture in a consignment environment. She and three partners identified two converging trends that spelled success.
Many long-time residents needed to sell their best furniture. Some were relocating to other regions of the country or to smaller independent living locations nearby, such as Wise Living. Others who were moving here discovered they had too much furniture – or the styles didn’t match their more open Cape architecture.
At the same time, hundreds of other people – usually between 40 and 60 years of age – needed to buy furniture. They were gobbling up second homes as rental investment opportunities or future retirement residences, and they had to furnish entire households with enough quality to attract high-end renters, but without exorbitant cost.
What once was an economy driven by tourists has become increasingly one directed by second-home owners. More than 55 percent of Chatham’s households are second homes. Their occupants spend about 50 percent more money than do full-time residents, and the vast majority live either in Massachusetts or within 150 miles of Chatham.
That means they are enjoying more and more weekends year-round at their second homes and are spending more of their money here, buying everything from furniture to restaurant meals. If they someday plan to move to Chatham permanently, they may be more inclined to switch not only hair salons in the area, but also accountants, attorneys and financial advisers.
It’s a huge opportunity for Chatham’s retail and service businesses at a time when they are striving to expand beyond the traditional summer season.
Serving the second home economy
Something else is happening that could have a profound impact on Chatham’s businesses and economy. While the town has among the oldest populations in Massachusetts, the number of residents between adage 65 and 75 will actually decline over the next five years, by as much as 5 percent.
In their place will come a veritable wave of 45- to 65-year-olds who plan to continue working – either buying businesses or establishing new ones – often in home offices supported by increasingly powerful broadband communications that makes it possible to work almost anywhere.
Many of them may not do any direct business in Chatham or even the Cape, but they are spending their money right here.
Andrew Neal and Beth Wade see these trends developing in front of their eyes. It’s why their two companies, AJN Property Management Group Inc. and Ricotta & Associates real estate are establishing an alliance to capture this affluent second-home market by providing high-end “concierge services.”
“Change is not just in the air; it is here,” said Neal.
Wade identifies two dimensions of the same market. Those whom she sells property to, and those who rent that property. “Both are asking – if not demanding – the attention and services akin to a high-end hotel,” she explained.
Relationships don’t end when a house is constructed by companies like AJN or sold by Realtors such as Ricotta. Their alliance will provide security and property management, down to filling the refrigerator in advance of long weekends or cleaning the house for renters every day while they spend time at the beach.
Neal will even drive clients to and from airports or to activities in town in a luxury sedan.
The changing face of tourism
Their stories are particularly relevant at a time when traditional hotels and motels are fading away. Visitors are spending fewer days on vacation at any one time, and they are waiting until the last minute to make reservations, often via the Internet.
While the Chatham Bars Inn is regularly at or near capacity, many smaller, less luxurious accommodations are often struggling as tourists demand more and more amenities. The price of a motel or B&B property today often is higher than the value of the business itself. That will mean accommodations converting to condominiums or time-shares.
Chatham is more fortunate than many other parts of the Cape. Its downtown is a huge draw for visitors, not only in the prime summer weeks, but also in the shoulder season.
While parts of Cape Cod were virtually empty after Labor Day, you still could not find a parking spot downtown. That’s partly because Chatham attracts empty-nest couples not tied down to a school-year calendar. And the town’s brand is nearly as powerful as Nantucket’s.
It’s one reason there are virtually no storefront vacancies downtown. Even as businesses come and go, there always is a new retailer ready to commit.
Challenges ahead
Despite a strong shoulder season, there is no avoiding the fact that summer remains the prime engine of Chatham’s economy. In coming years, retailers will be challenged to build their Internet presence and connect year-round to loyal summer visitors.
They also will have to connect more aggressively with second-home owners by staying open on Sundays or developing powerful customer databases.
While some businesses tied to tourism may suffer, others could prosper serving the changing population. These include restaurants, grocery stores, hardware stores, home furnishing retailers, art galleries, landscapers – as well as savvy artists and artisans, like Barnhill Pottery’s Susan Williams, who developed a strong online presence to keep her clients linked to the Cape year-round.
Even the accommodations industry in town could leverage second-home owners, said Ray Braz, who owns the Old Harbor Inn downtown and is the incoming president of the Chatham Chamber of Commerce.
He markets to full-time and second-home residents because they so often need to find quality accommodations when they host family reunions or invite a large group of old friends for a weekend and can’t handle them all at home.
And during the quieter winter months, Braz sees opportunities to attract Cape Codders for a stress-relaxing weekend to shop, visit a local spa and have a candlelight dinner downtown.
One challenge that may be more difficult to overcome reflects another demographic reality. Even as middle-aged people are starting to replace older residents, Chatham continues to lose families with young children.
While a median-priced home elsewhere on the Cape may be about $350,000, it is virtually double that in Chatham. That makes it very hard for younger people to afford homes or commercial rents.
While this trend means it will be harder to find employees who live in town – and it impairs diversity among the population – it probably won’t prove as overwhelming a threat to Chatham as it may other towns on the Cape.
The town’s wealth means that service companies and the trades will be ready to travel distances to serve local customers. And one of the strongest movements – led by the Cape & Islands Workforce Investment Board – is “Hiring 55 and over.”
Many retail and service positions can be well served by older employees who want to work part time and even share jobs. It will require different thinking and some adjustment by employers, but for a retail and hospitality economy, older workers are an untapped asset.
Originally published in the Nov/Dec 2006 issue of Cape Business
Glenn Ritt Glenn Ritt is editor and co-publisher of Cape Business Publishing LLC. He is the former publisher of Cape Cod Community Newspapers and editor of The Bergen Record in New Jersey. 
