The future of the Senior Care Community presents both challenges and opportunities
According to the National Center for Senior Housing and Care (NIC), between 2014 and 2017, 992 new properties were added to the current inventory of more than 15,000 properties. In 2014, 65% of those 992 were associated with operators of 2 or fewer properties; and, 19% by operators with over 10 properties. Evidence also shows that “housing construction is booming.” 45% of new properties were added within the last three years.
Demand for senior care housing is also escalating. 75% of the “Baby Boomer” generation will triple between 2025 and 2040. In Chicago, alone, more than 48 thousand units will be needed to serve a population that will increase by an estimated 55 thousand seniors.
So what are the expectations of current and future seniors? In fact, 55% of those surveyed want a balance between price and quality. And, this perception of value does not necessarily mean moving into group supportive housing. Rather, they want the ability to stay at home (aging in place) and benefit from access to community services (75% of those surveyed).
But the industry has to grapple with several issues that impact the ability to meet this “value demand.” Chief among these is the perception that “Boomers” lack the financial resources to support living in senior care communities. For example, assuming that assisted living residents spend 85% of their income on housing, almost $70 thousand in annual income would be required.
While adults are 74% confident of their financial security in retirement, the reality is almost 30% of households aged 55 and older have no retirement savings; and 40% of the 65+ population would fall below the poverty level. Further, it is estimated that the age population of 85+, with annual incomes between $35 and $55 thousand, will triple between 2017-2050.
Control developmental costs, shape, senior attitude,advocate policy and regulatory Improvements and develop strategies to streamline operations.
The Senior Care Community must be nimble and responsive to the changing landscape. In so doing, it will assure that our growing community of seniors may still enjoy the fruits of their past and maintain their quality of life for the remainder of their years.