Housing and community products for the older adult customer have changed very little over the last 40 years. Many multi-family and mixed-use developers entering this large and growing market have taken their lead from traditional senior living operators resulting in more iteration than innovation. Partnering with the senior living industry in the development of new housing products for today’s older adults is akin to partnering with IBM for a new mobile tech platform.
The traditional senior living model is unaffordable to most and a questionable value proposition to many others. The industry understands this and would like to find a way to attract the largest segment of their market, middle income older adults. A significant barrier in the quest for more affordability is the current operation model. Senior living communities typically provide a full range of services including meals, activities, transportation, and supportive care. This requires a large staff and numerous amenity spaces which together result in the high monthly fees. While a la carte services are now being explored, and are more in line with today’s market preferences, this will require a revamping of operational systems to bring about lower monthly fees.
Those interested in developing more affordable housing products for the older adult customer may want to take the lead from Co-living companies who are innovating with multi-family housing linked to technology and creating affordable community housing options for their millennial cohort. Could a housing and community product designed for millennials be adapted for active older adults? There are actually many similarities between millennial and boomer lifestyle preferences, particularly in the active older adult (55 to 75) segment of the market.