Every day roughly 10,000 baby boomers retire, and this is projected to continue for many years. In some states, the number of seniors that they have is growing so quickly that they refer to this phenomenon as “the gray wave.” This trend presents an opportunity for the senior housing space which will have a growing and steady influx of new customers for decades to come because of this new dynamic. Senior housing providers and investors who are looking to take advantage of this situation by growing their portfolios through acquisitions or other methods, should contact Cambridge Realty Capital to learn more about the different financing options it offers for purchasing senior housing assets and other purposes as well.
The Gray Wave
In states like Wyoming, where nearly 35 percent of the population is expected to reach 60 by the year 2030, local governments and senior housing providers are working overtime to try to meet the demands of the growing population of seniors. For example, Wyoming’s state government gives local communities funds that they can use to provide in-home nursing services to their elderly residents. With this in mind, some senior housing providers are considering whether to add home-services to the ones they already provide. The benefits of doing so would not only include the revenue from these services, but providers would also be able to build relationships with seniors that they can capitalize on whenever they are ready to transition into a senior living community. Some states also utilize senior centers where seniors can go for a few hours a week to spend time with other seniors, get a quick checkup and participate in activities. Many providers view these senior centers as an opportunity for them as well because they can provide services there, which helps them build relationships with prospective residents.
Also, in states where the cost of a nursing home or other type of senior housing is significantly greater than the average income of the state’s residents, providers are exploring ways to make their services more affordable. Often times that means educating residents on long-term care insurance and other financial assistance that they might not be aware of and using new technologies and methods to keep costs down so that they can pass those savings onto consumers.
Lastly, providers are noticing that a growing number of seniors that are transitioning into senior housing are gravitating to communities that offer attractive amenities with an amiable and relaxed atmosphere as opposed to communities that look and feel more institutional. Consequently, they are making a greater effort to provide these types of facilities by renovating existing communities so that they have these features.
While the nation’s changing demographics provides some challenges to state and local governments across the country, it also provides valuable opportunities to senior housing providers as they look for ways to increase their occupancy rates and net operating income. Accordingly, providers should continue to look for ways to take advantage of this demographic trend in an effort to gain more residents and improve their financial position as well.