Lately, as I talk with our senior living clients, many of them seem to be thinking about the same challenge. Similarly, that same challenge seems to be the topic of seminars at recent industry conferences, as well as the subject of several articles published in many of the trade magazines. How do we provide senior living solutions to the middle market?
For much of the past thirty-five-plus years, development and growth of the senior living industry has been off the charts. Everyone understands that as the baby boomers age, we will be hard-pressed to meet the demand, however currently there continues to be concern and discussion that the market is becoming overbuilt. But upon further study, one will quickly discover that most of the growth and development has been either on the high-end or on the affordable/subsidized end of the market. Very little new development has been targeted at the middle market, which is defined as seniors who live primarily on Social Security benefits with modest assets from the sale of their home.
There are many seniors who cannot afford to pay $6,000.00 or more each month for senior living, yet their need for assistance with activities of daily living is an issue they and their children, or support system, must deal with. The challenge senior living developers and operators are looking at very carefully revolves around finding a model that meets residents’ needs and yet still provides an acceptable return for investors. However, while many see this as a challenge, some developers and operators see this as a tremendous opportunity. The Douglas Company agrees with those who view this as an opportunity.
There is not one “silver bullet” that will address the issue. By thinking outside of the box, many developers and operators are exploring opportunities to reduce construction and development costs while at the same time being very creative with service offerings, amenities, and staffing models.
With more than forty years of experience working with senior living developers, operators and architects to design and build modern senior living communities that work in the marketplace, The Douglas Company is in a unique position to provide innovative options to help control construction costs and contribute to a viable solution to providing senior living to the middle market. Call us today to arrange a discussion on how we can help you find a middle market senior living solution that works for your market.
Director of Business Development
The Douglas Company
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