Podcast Summary
From ancient practices to a $3 billion industry: The cemetery industry, rooted in ancient practices, has grown into a $3 billion business in the U.S., providing final resting places for many and serving as valuable real estate investments.
Cemeteries, an industry rooted in ancient practices, have evolved into a significant business in the United States, especially with the rise of rural cemeteries during the Industrial Revolution. These cemeteries, which range from park-like settings to golf course-like landscapes, serve as final resting places for many, including industry titans. The cost for a premium plot can be steep, reaching up to $50,000. The industry's financial success is crucial due to the eternal promise made to the deceased and their families. As Professor Tanya Marsh, who teaches the only funeral and cemetery law course in a U.S. law school, explains, the modern practice of burying people in dedicated graveyards began with organized religion and evolved as urban populations grew and church graveyards became overcrowded and unsanitary. Today, cemeteries are a $3 billion industry in the U.S., and for those who own or manage them, they represent a valuable real estate investment.
Considering the long-term financial stability of a cemetery is crucial when purchasing a burial plot: Buying a burial plot includes expenses beyond the plot cost, such as opening/closing, containers, recording fees, and headstones. Cemeteries use perpetual trusts for ongoing expenses, but not all have sufficient funds, impacting long-term care.
When you purchase a burial plot in a cemetery, you're essentially renting the space for your remains with a very long-term lease. The cost of a burial goes beyond just the price of the plot itself, with additional expenses for opening and closing the grave, outer burial containers, recording fees, and headstones. These extra costs can add up to tens of thousands of dollars. To ensure the long-term care of the cemetery and its inhabitants, cemeteries put a portion of the funds into perpetual trusts or endowment funds. These funds are used to cover ongoing expenses such as landscaping, utilities, and repairs. However, not all cemeteries have sufficient funds to cover these costs indefinitely, and some may face financial difficulties or even closure. In summary, while purchasing a burial plot may seem like a simple transaction, it involves more than just the cost of the land, and the long-term financial stability of the cemetery is an important consideration.
Cemetery Bankruptcy and the Resale Market for Burial Plots: When a cemetery goes bankrupt, plots may be sold for development, leading to a resale market for burial plots. Certified brokers can help save up to 80% on cemetery plot prices.
When a cemetery goes bankrupt, there's a possibility that the land may be sold for development, requiring the exhumation of all buried bodies at the expense of the buyer. Abandoned cemeteries are a significant issue due to the lack of incentives for municipalities to take them over and the challenges in opening new cemeteries. As a result, the fixed supply of cemetery land has led to a resale market for burial plots. If you purchase a burial plot in advance but later change your mind, your options are limited, and your best bet is to use a certified cemetery plot broker to sell or buy the plot at a discounted rate. These brokers facilitate the transfer of plots and can help you save up to 80% of the cemetery's price.
Increasing costs of burial plots driving people towards cremation: Due to rising costs and limited space, more Americans are opting for cremation as an affordable alternative to traditional burial
Cemetery plot prices have been increasing significantly over the years, and many people are now opting for cremation as a more affordable alternative. Traditional burial plots are becoming harder to sell due to limited space and high costs. For instance, a plot that cost $3,000 to $4,000 three decades ago can now sell for up to $25,000. Moreover, people often sell their plots due to financial reasons or because they want to be buried in a different location. Cemeteries have tried to maximize capacity by burying caskets upright, using double-decker plots, and creating spreading gardens for cremated remains. With six out of ten Americans now choosing cremation, this trend is a welcome one for cemeteries as it helps address the issue of limited space.
Expanding Burial Space with Cremation in a Casket: Mountain View Cemetery in Oakland allows for cremated remains to be added to existing graves, maximizing the use of available space and offering a more affordable option for larger families.
Mountain View Cemetery in Oakland, California, has become more flexible with its burial policies, allowing for the addition of cremated remains to existing graves. This approach, known as "cremation in a casket," enables the expansion of burial space without increasing the physical size of the cemetery. Families can purchase future burial rights for cremations at a lower cost than a full casket burial, making it a more affordable option for larger families. With around $25 million worth of grave space left, Mountain View's management is focusing on maximizing the use of available space. In contrast, some countries have different burial practices, such as leasing graves for a few decades and eventually transferring remains to communal spots. Ultimately, the organic nature of human remains means that they do not last forever, and the cost-effective use of land for burial is a necessary consideration.
