Every year, the American retirement housing situation changes and 2024 is no different. Many of these changes are in response to how the population’s needs and preferences are evolving. Today, we are looking at the current trends that are affecting retirement housing, including changes in adult communities and co-housing arrangements.
Higher Demand
At the end of 2024, the majority of the oldest baby boomers will have turned 80. As such, the demand for senior housing will most certainly rise. Over 50% of these people are considering moving to senior living communities within the next few years. As a result, there will need to be more senior housing options available to accommodate these needs.
The Effect on Operations
Due to this increase in senior living occupancy, many operators will need to reconsider their pricing and discount strategies. They will need to meet their census targets without compromising on their rates and margins. As such, many communities will likely offer concessions or price-cutting tactics for their residents.
Greater Regional Density
One of the biggest changes in retirement housing involves regional operators. Many real investment trusts (REITs) and other ownership groups have shown a preference for regional operators because they have a greater local presence and expertise. These companies are putting more value on regional knowledge and connections for senior living options.
Better Wellness and Fitness Options
Many senior living communities are also focusing more on wellness and fitness programs. Some are integrating yoga and fitness classes to promote healthier lifestyles among residents. The International Council on Active Aging predicted that 59% of these communities would focus on this lifestyle by the end of 2023, and this trend will likely continue into 2024.
New Types of Living
Several high-profile companies have already entered the senior housing market, such as Jimmy Buffet’s Margaritaville resorts and Disney’s Storyliving. Predictions suggest that this trend will continue, with companies like Costco also entering the market. Costco is reportedly going to create several mixed-use developments that include senior living. This will give these older citizens more convenient access to essential services at competitive prices.
Collaborations Across Industries
Additionally, the fact that brands like Costco and Amazon are starting to move into the senior living space suggests that there will be more collaborations across different industries. This would allow seniors to benefit from the convenience and cost savings of retail giants, making essential services more accessible to residents.
Themed Communities
Similarly, the success of these themed communities, like Margaritaville and Storyliving, suggests that many seniors are looking for a more unique living experience. These communities are particularly attractive for middle-market residents due to their community-focused and lifestyle amenities. Many seniors are looking for an engaging community life, not just a place that provides care.
More Luxury Senior Living
There is also a greater demand for luxury senior living options, which has been mainly caused by an increase in the number of high-income older people. Several companies are trying to adjust to this change by offering a greater number of luxury senior options, focusing on lifestyle and quality of service. Some of these luxury communities offer concierge services or membership-based payment structures.
New Housing Models
Wealthier seniors are also more likely to want specialized senior living options. For example, they may request luxury memory care facilities that will give them high-quality services along with lifestyle amenities. There is a growing number of affluent seniors who are requesting more than just traditional care.
Challenges With Affordable Housing
However, not all senior citizens are rich. There is a growing number of low-income retirees, which means that the demand for affordable senior housing is at an all-time high. The National Council on Aging found over 17 million Americans aged 65 and older are struggling financially. Although the government is trying to solve this, this challenge will likely remain significant in 2024.
Economic Issues
Likewise, many senior living operating companies are facing economic challenges, which have been caused mostly by inflation. This has affected their operating margins and the cost of care. In order to deal with these challenges, some companies are investing in more technology and trying to improve care quality.
Changes in Federal Adjustments
It is likely that the Federal Reserve’s financial policies will change in 2024. Some economists have forecast that they will reduce rates in 2024, which could help to ease financing conditions. If this happens, it could encourage more development projects and living space acquisitions by certain companies.
Greater Use of Technology
Similarly, companies are using technology to improve senior living in various ways. Some companies are using technology to improve operational efficiency and resident care. They are using virtual assistants and voice-activated appliances to ensure that their residents receive the best care.
Smart Living
Technology can also be used to create smart living options for senior citizens. For example, senior citizens can customize smart thermostats or lighting to their individual needs, giving them greater control over their living environments. This technology can also be used to improve safety and security within these communities.
Using Virtual and Augmented Reality
Another important technological change is in terms of virtual and augmented reality technologies. In senior living communities, these could allow residents to take part in virtual gatherings and explore new places without needing to travel. They could also be used for cognitive exercise to improve senior’s well-being.
Changes in the Market
Other changes in the market include a significant rise in acquisitions and partnerships. Many retirement housing companies are being consolidated into other companies, mostly due to greater interest from investors. Some companies have also claimed that consolidating the market will allow for better operation and management.
Staffing Problem
Another key issue involves staffing, with many companies struggling to find and maintain qualified personnel. Operators are trying to explore different options to address these challenges, such as using technology to streamline operations and improve the work environment. This can simplify things like payroll.
Eco-Friendly Living Options
The number of alternative retirement living options is also increasing, with many more communities adopting green building practices and sustainability programs. This is mostly due to many senior citizens being more emotionally conscious. At the same time, these companies are also trying to address concerns over environmental conservation.
More Co-Housing
Similarly, co-housing arrangement options are also becoming more popular. Co-housing allows seniors to live in shared spaces to create a sense of community and mutual support. This is an alternative model to traditional senior living options and comes from concerns over senior citizens lacking social connections.
Programs Across Generations
Additionally, some communities are using intergenerational programs to deal with these social connection problems. These programs involve encouraging senior citizens to create relationships with other age groups. The main aim is to prevent senior citizens from feeling isolated and to help residents feel more of a sense of community.
Less Independent Living
One area that is currently showing growth difficulties is independent living. Approximately 60% of senior citizens are looking for more community-based living options, meaning that the independent living market is struggling to expand. Senior living companies must, therefore, adopt policies to meet these needs, such as creating more active adult communities.
