August 14, 2013
WHY ARE SENIOR CARE HOMES OVERCROWDED?
Housing is a critical element in the lives of older persons. The affordability of housing affects the ability of the elderly to afford other necessities of life such as food and medical care. Housing that is located near hospitals and doctors, shopping, transportation, and recreational facilities can facilitate access to services that can enhance the quality of life. Housing can also be a place of memories of the past and a connection to friends and neighbors. Housing with supportive features and access to services can also make it possible for persons to age in place.
Small Business Magazine recently looked into the need for more senior care housing; they found that, “According to the Administration on Aging, the population 65 and over will increase to 55 million in 2020, a 36% increase over the previous decade. By 2030 there will be almost twice the number as in 2008. Even with all the service offerings those that provide a high quality of service continue to grow, that is if they can keep delivering quality of service. Furthermore:
“For every franchise brand offering in a major metro area, there are between five and ten independents. Those numbers have stayed consistent over the last ten years. There has and always will be competition for senior care with the best operators taking home the lion’s share of the business. The success of a senior care agency like any other service business is based on quality of service and efficiency. With all things being equal the most efficient operators who are able to grow while continuing to provide quality of service will prevail.”
Due to the collapse of the market in 2008, senior care facility construction became stasis. Of course, the ageing population did not respond similarly. As a consequence of this senior care housing construction is beginning to rise once again. However, the way in which it is being constructed has taken a different method. Maximizing space, while always a consideration, has taken a back seat to comfort. It is now more pertinent than ever to associate yourself with someone who knows the trends regarding senior care facilities. According to David S. Schless, president of American Seniors Housing Association, “It’s certainly not for everyone, but there are companies that really understand the markets and submarkets, and they’re very adept at building,” At the height of the housing boom, there was a nationwide surplus of retirement and assisted-living housing, but with construction bottoming out, demand is now outstripping supply. New construction starts in such housing have dropped by 53 percent since the crash and now make up just over 1 percent annually of the senior housing inventory, according to the National Investment Center.