Cemeteries are having trouble expanding because of the high cost of real estate and a drop in revenues as strapped families increasingly turn to cheaper cremations.
Communities struggling with budget deficits have also had to curtail spending on public cemeteries, which means many people may find that their hometown cemeteries are full.
“I know a lot of people living in Saugus would like to be buried in Saugus. But we’re also thinking about the schools,” said Donald Wong, chairman of the board of selectmen for Saugus, a town a few miles north of Boston. Wong said the town is thinking about creating new burial space on the same site as a new school.
On Cape Cod, the town cemetery in Provincetown has six burial plots left. The city has set aside money for years to expand its burial ground into 2 acres of adjacent land. Now, Public Works Director David Guertin isn’t sure the town council will free up the money.
” ‘Let’s not spend money’ is the mantra,” Guertin said. “That applies to cemeteries as well as schools and mowing the lawn and plowing the snow.”
Cemeteries are not only seeing a drop in money coming from municipalities. Customers are scaling back as well.
Gary Brown, who oversees six cemeteries for the Catholic Diocese of Phoenix, said they’ve seen a 17% decrease in prepaid plots over the past two years. That leaves the diocese with a lot less money for expansion.
“People are at this time reluctant to take their extra funds and spend it on items that are not necessary,” Brown said.
Cemeteries also haven’t been able to rely on investments to bail them out. David Heisterkamp, president of the Pennsylvania Cemetery, Cremation and Funeral Association, said most cemeteries invest part of their income into perpetual care funds for the maintenance of graves. The return on those investments is used to pay for daily operations.
Heisterkamp said those investments have been clobbered by the recession, forcing cemeteries to cut back on maintenance and lay off workers.
“There’s a myth that this industry is recession proof,” he said.
Brad Hansen, president of Hansen Mortuaries and Cemetery in Phoenix, said private cemeteries are getting squeezed from customers looking for deals. He said about 68% of Arizonans opted for cremations in the past year, compared with 60% the previous year.
A funeral service can cost more than $6,300, compared to about $3,000 for a cremation service. That doesn’t include the cost of a cemetery plot.
“They see a value in it,” Hansen said.
