The ULI North Texas Council for Health, Wellness & Life Sciences recently hosted the first of four educational programs scheduled for 2018. We convened an impressive panel of industry leaders to present their perspectives about the future of senior living. The following points highlight some of the many topics that were discussed. I have added commentary to each.
- Community Entrance Fees – Choosing an affordable retirement community for the long-term may include entrance fees. Whether refundable or non-refundable, entrance fees are based on apartment size, location, view and other residence-specific amenities. Jim Distasio with HumanGood notes that paying more upfront lowers monthly fees if you move up to assisted living, skilled nursing, or memory care.
- Future Patrons of the ‘Experience Economy’ – According to Daniel Newman, a Forbes Contributor, we no longer simply make a purchase and walk away. Consumers seek—and often expect, whether we realize it or not—additional utility from the brands we patronize. We want to feel like companies are listening. We don’t just want the goods or services – we want an experience to sweeten the deal. Welcome to the Experience Economy. With the purchasing power of the Baby Boomers and evolving consumeristic attitudes of generations that follow, expectations of senior living accommodation will be epic.
- Elimination of Reference to “care” and “facility”— Medical and healthcare nomenclature no longer resonate with lifestyle consumers who are seeking residential community living with available support service programs.
- Dining environments and choice – An abundance of strategic business opportunities exist for partnerships and alliances among popular consumer brands.
- 55+ Demographics – Those who are turning 55 do not necessarily identify themselves as “young seniors.” How many independent living communities marketed to 55+ year-old residents are really attracting those younger senior patrons?
- Senior Affinities – In communities, seniors tend to socialize and connect with residents who have the same level of wellness and agility, more so than being part of the same age cohort.
- Race, lifestyle orientation, and cultural biases – Increased numbers of senior housing consumers are selecting cohort living arrangements influenced by social rather than economic factors.
- What about the ‘middle third’ of the consumers? – There is a purported 20% of seniors who can afford ‘higher-end’ community living of their choice, and 20% who rely heavily on subsidy payment from government welfare programs. However, what will the senior housing market look like for the middle 60% of consumers? How will this majority purchasing group be accommodated with environments for affordable senior living?
- Affordable and senior housing are not mutually exclusive – In his “5 Trends Revolutionizing Senior Housing Design and Construction,” Skender’s Travis Gonzalez writes the cost of upkeep and potential cuts to Medicare and Medicaid have some facilities shifting toward a short-term and outpatient care model, combining independent living with skilled nursing facilities. Centers have adopted a service-oriented plan that focuses on improved quality of treatment, faster recovery times and lower return rates.
- Innocuous support structure – Currently, we have a distressed albeit large workforce delivering services for senior care and living. But there still are not enough skilled workers to support the growing demand. While salary is likely not the primary incentive, convenience might be the value. There are communities being conceived and/or developed that provide embedded, affordable living accommodation for skilled staff.
- Blue Zones – According to Dan Buettner, Founder of Blue Zones, longevity can’t be chalked up to just “good genes.” The Danish twin study shows us that genes dictate only 20% of longevity. Lifestyle and environment account for the rest. During his time in all the Blue Zones regions, he saw firsthand how the environment dictated the lifestyle of the world’s healthiest people. They weren’t trying to be healthy.
- Naturally Occurring Retirement Communities (NORCs) – According to Marlene Piturro, Ph.D., some of the best retirement communities occur naturally where an array of accessible support service programs is the key to success. Viewed as a cost-effective aging-in-place model and favored by more than 80 percent of seniors, NORCs have benefited from early widespread support.
- Socializing extends life; it’s the key to thriving and longevity – In Susan Pinker’s recent TED Talk (TED2017 Vancouver, BC), she explains the secret to living longer may be your social life. Senior communities by their nature offer abundant opportunities for social connections.
- Respite services are being offered in more senior living communities – If you take care of an elderly parent but need to go away for the weekend, respite care can step in and provide 24-hour care for the elderly parent. On the other hand, if you need to work and the elderly parent cannot be left alone during that time, respite care can step in to provide help during work hours.
- The technology highway – While residential designs for senior living have embraced the tactile experience elevated by the hospitality industry, new communities have not yet embraced the need for a blended ‘high-tech, high-touch’ environment. But this will change in time, especially as the Baby Boomers enter the market. It would be prudent to build infrastructure for it, even not yet fully utilized.
- Smaller spaces over large, common areas – Panel members noted that new communities are currently designed with common areas that are not to human scale, which are undesirable for residents and costly for developers. The post-occupancy evaluations that they have read or participated in suggest that residents would rather reallocate space from large, often oversized dining and community rooms into dispersed small lounge areas that can serve a variety of settings.
To learn more about the ULI North Texas Council for Health, Wellness & Life Sciences, please feel free to contact Lynne.Meers@MEDCOconstruction.com or me at Travis.Leissner@hoeferwelker.com.