As the oldest baby boomers begin turning 80 years young, the industry is seeing a severe supply and demand imbalance.
- An Argentum report states that by 2030 the US will need 560,000 new senior housing units to meet the demand, but only a small fraction, 191,000, will actually be built.
- Due to a lack of sufficient, suitable senior housing options, approximately 78% of baby boomers plan to stay in their homes longer than previous generations.
- Luxury communities are expanding, as about 40% of baby boomers are financially well qualified and can afford senior housing based on income alone. However, there is a huge gap in affordable options available to the boomers who do not qualify for Medicaid but cannot afford the median cost of assisted living either.
- Average costs for independent living, nationally, exceed $4,100 and $6,400 for assisted living. While in-home care averages $5,800/month for just 44 hours per week, it can easily exceed $24,000/month for 24/7 care.
- In the last 7 years, home prices have increased 22%, rent is up 45%, grocery costs are up 30% and the cost of in-home health care is up 75%, compared to just a 30% increase in senior living costs. Supporting the fact that senior living may actually be a more affordable option than most seniors believe.
- Existing communities are experiencing record occupancy levels which is creating longer than usual waitlists and are forcing aging in place by default. This could also lead to pricing hikes as demand outpaces supply.
- Historically, boomers look to senior living options around the age of 80, but by 2030 the US population of 80-year-olds will grow by more than 4 million – reaching 18.8 million.
- As the baby boomers live longer, healthier lives, they want to retire in an active, inspirational place where they can focus more on activities, community service, wellness, and hobbies rather than healthcare.
The bottom line is that senior living communities offer a great solution for those who are financially prepared. Demand is quickly outpacing supply resulting in long waitlists at the best communities. The best advice is to start researching communities early, find a couple you could see yourself living in and get on the waitlists. Seniors as young as 65 are jumping on the bandwagon and getting on the waitlists now so they have a chance at securing a spot in the next 10-15 years!
For more information on the variety of senior living options available around the Midlands, or to learn specifically about one such option: Laurel Crest Retirement Community, please contact Gayle Chifolo, Director of Sales & Marketing, at 803-926-5272.
