10 senior housing development trends for the next 10 years
(ARA) - America finds itself amid the historic "age wave" - the largest ever demographic shift from a younger to older population. The next 10 years are pivotal in senior housing and services development. According to the Administration on Aging, from 2010 to 2030, the U.S. population aged 65 and over is expected to grow by 75 percent to over 69 million. Many in this large cohort will live longer, have more education, be more affluent and have greater expectations than any previous senior generation.
Many entrepreneurs, developers and investors salivate at the product needs of an aging population. And one area that draws immediate interest is senior housing. But those who think changing demographics mean "if you build it, they will come," are potentially setting themselves up for failure.
Those who have seniority next are also the savviest consumers America has seen and that means those thinking senior housing development will have to think more strategically and substantively about consumer preferences than ever before. Following are 10 senior housing development trends to be mindful of in this new decade.
Sustainable design
Energy efficient and environmentally responsible design and development are becoming increasingly important to the senior housing market. LEED Certification (Leadership in Energy and Environmental Design) is great, but not everyone can achieve or afford that. However, there are many cost-effective, sustainable features that can still be achieved even if one doesn't seek LEED designation.
Universal design
People enjoy ease no matter their age or physical ability. Homes with universal design look like other homes, they're just much easier to use. The smart features of a universally designed home will serve its inhabitants even when physical abilities change. No-steps entryways, one-story living, wide doorways and hallways, no-slip bathroom surfaces, ample built-in lighting, lever door handles and slow-closing storm doors are some of the features appreciated by people of any age, especially with an armload of groceries.
Technology, technology, technology
According to the Pew Internet & America Life Project, an initiative of the Pew Research Center, four in 10 seniors currently use the Internet. Seniors' use of technology will only increase. Who doesn't want wireless computer access throughout their home? And fast, secure access to communication, shopping and information available on the Internet? But how about wireless, non-audio/visual sensor technology that can signal to your security service that "patterns of movement" in your home might indicate a situation that requires assistance? For seniors who prefer to live in their own homes, compromising medical or physical conditions notwithstanding, sensor technology is just one of the growing means of support for aging in place, with the reassurance of knowing help is available when needed and online connections to family, friends and others a click away.
Age of amenities
Make no mistake, life is in the details. No one seems to become less particular as they age. Flexibility with regard to individual amenities is important to anyone making housing arrangements, and it should be equally important to senior housing developers. Whether a la carte, bundled or marketed as care and service tiers - all will need to be itemized and transparent as to what, exactly, one can expect for their retirement dollar. Love the cookies, but the cookie-cutter approach is so last century.
At-home services
Not everyone wants to live in senior housing. Senior housing providers that flourish will develop service strategies that extend outside of their bricks and mortar to serve people who want to remain in their own homes. Senior housing providers who don't embrace possibilities for being a "go-to" source on aging gracefully, wellness and living fully, will be at a disadvantage.
NORCs and virtual villages
NORCs (naturally occurring retirement communities) develop where communities have a population of neighbors who age as a cohort, whether in an apartment building, a single block, or neighborhood. These also can be multigenerational. Aging in place means more independent senior living and not having to move to access services and products to meet your needs. It is possible for aging neighbors to band together and develop, or find help to develop, a variety of services from home repair to education to health care, thereby retaining the highest quality of life for all residents as they age. For example, Ecumen, a senior housing provider and developer, recently worked with a community in Minneapolis to create Mill City Commons.
Continuing care retirement communities
Sometimes called "life care retirement communities," many CCRCs guarantee lifetime housing and care with long-term agreements about the obligations of the CCRC as well as its costs. Usually expensive, with entrance fees and monthly payments, residents might own or rent their space, depending on the CCRC arrangements. CCRCs can successfully mingle active adults, as well as those with serious physical and mental disabilities, in a campus-like community. As their needs change, residents move from one type of housing to another, all within the same campus system. For many people, a CCRC becomes a long-term care insurance policy.
Empowerment
Senior housing providers that do best will empower residents. People make their own choices their entire adult life - why should that change when one reaches "senior" status? The senior housing profession will see more customer-experience tools where customers outline their expectations about how they want to live. Looking to more fully empower its customers, Ecumen created what they call a "lifestyle covenant," where customers reflect and share what's most important to them in how they live their life. Ecumen employees then use that insight to forge a "covenant" with the customer to outline how they're both going to support the desired lifestyle. The partnership agreement is signed by the customer and the employees that will be working with him or her.
Memory care
According to the Alzheimer's Association there are nearly a half million new cases of Alzheimer's each year. By 2050, that number will double to nearly a million new cases per year. It would be wonderful to be able to eliminate all memory care housing because that means there is an Alzheimer's cure. Until then, communities need to provide empowering housing and services that will allow people to live as fully as possible with this devastating disease.
New ways of financing
The days of low equity or 100 percent debt financing for new senior housing construction are gone for the foreseeable future. Certain former "go-to" governmental programs have recently been tightening their underwriting criteria and financing from those sources have become increasingly difficult to obtain. Look for more partnerships, for-profit/non-profit joint ventures, increased use of subordinated debt and other emerging financing vehicles to enable projects to move forward in the next 10-year period.
Courtesy of ARAcontent