It’s been said that the only constant is change. Those in the senior housing business understand this more than most. It’s an industry that must almost constantly reinvent itself to adjust to changes in the aging consumer’s demands and government regulations. The following are a few industry trends that those in the business can capitalize on, whether by adjusting their own operations or understand the competition.
Many evidence a strong demand by seniors for not only care and shelter, but community as well. They also seek more of a continuum of options for different stages of aging rather than the two choices of the past: live in a traditional nursing home or live at “home.”
Since their inception in 2002 with the creation of Beacon Hill Villages in Boston, villages have continued to grow in popularity. These senior living or retirement communities allow seniors to remain in their own homes but provide a host of services and activities to bridge the gap and provide not only the additional assistance seniors might need, but also the socialization that may be lost as kids grow up and spouses pass.
Unique Housing Solutions
Seniors continue to seek unique housing solutions that fit their needs and the ideas keep coming. Fromcohousing, where seniors own or rent their own homes that are then connected to a common space like a courtyard, to niche retirement communities, which focus on growing a community with a particular “niche” or “affinity” like religion or a hobby, new ideas continue to be developed.
An Aging-Aging Population
People are living longer. This is not new news, but it has important implications for senior housing providers. The population of seniors aged 85+ in 2040 is expected to be three times what it was in 2011. Of course, the needs and demands of those in their 80s vary greatly from the needs and demands of those in their 60s that the senior housing community has traditionally focused on.
Rising Healthcare Costs
Seniors are living longer, but with less savings, though initiatives are being taken to cut them, the costs of healthcare are still increasing. In many cases, seniors need more for less. Innovative senior housing providers are finding ways to utilize marketing, like discounts, to appeal to these seniors while simultaneously using technology and other strategies to lower costs and maintain profit margins.
Beyond the Necessities
Seniors are redefining what its like to be a “senior.” Gone are the days of seniors who are content with sitting on the couch watching their favorite reruns. Seniors now want to continue to have well-rounded lives with social and physical activities and many plan to continue working. Facilities and communities that incorporate programs that are consistent with the new senior lifestyle will increase their marketability.
Financing Your Next Project
We hope that thinking about these trends has helped you come up with or fine-tune some of your business ideas. Great ideas still require funding and Cambridge Realty Capital is here to help you fund your next senior housing project or healthcare facility project.