These are the Important Trends in the Senior Housing Sector

The current affordable housing crisis continues to bear down on the country – and it’s hitting hard on an often ignored group of residents. The senior population is quickly funneling into a group commonly referred to as the “forgotten middle” – and this is a problem for CRE. 

Specifically, the forgotten middle describes multifamily tenants who don’t meet the qualifications for low-income housing but also cannot afford the market’s steep rental rates. 

Today the senior population makes up a large portion of multifamily tenants. Their numbers are expected to continue rising, with the 85+ age group expected to triple over the next 30 years. Even with this exponential growth, more and more seniors are having trouble meeting their monthly rents. 

When analyzing the issue facing senior residents, all of the CRE industry is wondering who will fund the developments. It’s obvious that changes need to be made and new infrastructures built with senior residents in mind. But who’s going to lend a hand? 

Are Developers Interested in Senior Housing? 

While the problems surrounding senior housing rage on, the need for funding only intensifies. Currently, there just isn’t enough funding projects in place to help develop special senior living spaces. These programs need to be established if the crisis is going to be solved. 

However, some perks might spark interest amongst developers and investors. Senior living projects can offer large ROI’s. With so many residents in need of a housing option somewhere between low-income and market-rates, it won’t take long to occupy these new CRE properties with senior residents. 

It takes a creative strategy to optimize these projects and combat the setbacks that arise with designing houses for seniors tenants. 

Amid this brewing issue, CRE’s senior housing market is using these 2 new trends to help seniors. Make sure to keep an eye on these developments for senior housing:

Meeting Their Needs: Healthcare and Housing 

As the average person’s lifespan continues to rise, the healthcare system is expected to take a hit. People who live longer will undoubtedly require more care, adding a new layer to the plight facing seniors. 

CRE has found a solution to deal with the problems of affordable housing and increased healthcare. Contemporary senior housing projects are blending the two into one convenient solution. A joint partnership between housing companies and healthcare providers is opening up the possibility for a new era of senior care. 

Adopting an Individualized Approach to Holistic Care

In the past, senior living facilities that offered health care resources were structured around a setting-specific model. Segmented areas were designated, which resembled the classic healthcare setting. 

That’s all changing in 2020. As medical CRE strives to drop their antiseptic qualities and adopt a home-centric design scheme, the same thing will happen to senior facilities. The main focus will be to provide the senior resident with their unique needs in a comfortable and homey atmosphere. 

The lines between healthcare and daily life will be blurred into one holistic care module, helping to increase their quality of life while still providing seniors with the care they need.

What is your take on the senior housing crisis? For the latest CRE Outlook, check out our blog.