The Demographic Dip: An Excuse or Imposing Reality?

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The Demographic Dip ALFA Annual Conference May 9, 2013 Phil Downey Senior Housing Analytics 571-423-8944 pdowney@senioranalytics.com


75+, 80+ and 85+ population, 1990-­‐2050 50,000 45,000 40,000 35,000 30,000 75+

25,000

80+ 85+

20,000 15,000 10,000 5,000

Sources: U.S. Census Bureau: Projec2ons of the Popula2on by Age and Sex: 2015-­‐2080. (NP2012-­‐T12), Dec. 2012; Intercensal Es2mates of the Popula2on by Sex and Age 2000-­‐2010 (US-­‐EST00INT-­‐01), Sept 2011.

-­‐

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050


Annual growth rates in the 75+ and 80+ U.S. population (from U.S. Census)

Compound annual growth rate over 5 yrs.

75+

80+

5.0% 4.5% 4.0%

Sources: U.S. Census Bureau: Projec2ons of the Popula2on by Age and Sex: 2015-­‐2080. (NP2012-­‐T12), Dec. 2012; Intercensal Es2mates of the Popula2on by Sex and Age 2000-­‐2010 (US-­‐EST00INT-­‐01), Sept 2011.

3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 2045-­‐50

2040-­‐45

2035-­‐40

2030-­‐35

2025-­‐30

2020-­‐25

2015-­‐20

2010-­‐15

2005-­‐10

2000-­‐05

1995-­‐00

1990-­‐95

0.0%


Compound annual growth rates in the 75+ population (data source: U.S. Census) 1990-­‐‑9 5

1995-­‐‑0 0

2000-­‐‑0 5

2005-­‐‑1 0

2010-­‐‑1 5

2015-­‐‑2 0

2020-­‐‑2 5

2025-­‐‑3 0

2030-­‐‑3 5

2035-­‐‑4 0

2040-­‐‑4 5

2045-­‐‑5 0

75+

2.6%

2.3%

1.4%

0.9%

1.7%

2.8%

4.2%

3.8%

3.2%

2.0%

0.7%

0.2%

80+

3.2%

2.5%

2.3%

1.8%

1.4%

1.7%

3.3%

4.7%

3.9%

3.2%

1.8%

0.4%

85+ 3.8% 3.1% 2.1% 3.3% 2.7% 1.2% 90+ 5.1% 2.8% 1.9% 3.5% 5.2% 2.5% 75+ Compound annual growth rates, 5 year cohorts

2.0% 1.3%

3.9% 2.6%

5.3% 4.6%

4.0% 5.9%

3.2% 4.2%

1.7% 3.3%

75-­‐‑79 80-­‐‑84 85-­‐‑90 90+

1.8% 2.8% 3.2% 5.1%

2.1% 2.0% 3.2% 2.8%

0.1% 2.6% 2.1% 1.9%

-­‐‑0.4% 0.5% 3.3% 3.5%

2.1% 0.1% 1.2% 5.2%

4.3% 2.2% 0.3% 2.5%

5.3% 4.5% 2.5% 1.3%

2.6% 5.5% 4.8% 2.6%

2.2% 2.7% 5.7% 4.6%

0.3% 2.3% 2.9% 5.9%

-­‐‑1.3% 0.4% 2.5% 4.2%

-­‐‑0.4% -­‐‑1.2% 0.5% 3.3%

Sources: U.S. Census Bureau: Projec2ons of the Popula2on by Age and Sex: 2015-­‐2080. (NP2012-­‐T12), Dec. 2012; Intercensal Es2mates of the Popula2on by Sex and Age 2000-­‐2010 (US-­‐EST00INT-­‐01), Sept 2011.


75+ U.S population growth, 5 year cohorts

18,000

16,000

75-­‐79 14,000

80-­‐84

12,000

85-­‐89

10,000

decline 2005-­‐‑10

8,000

90+

80-­‐‑84 85-­‐‑90 90+

6,000

4,000

2,000

-­‐‑

75-­‐‑79

1990

1995

2000

2005

2010

2015

75-­‐‑79 6,104

6,669

7,416

7,464

7,313

8,102

2020

2025

2030

2035

2040

2045

2050

10,010 12,955 14,722 16,431 16,640 15,569 15,243


14.0% 12.0%

75+ population CAGR (5 yr. intervals), Top 100 MSA's 1990-­‐2010

14.0% 12.0%

80+ population CAGR (5 yr. intervals), Top 100 MSA's 1990-­‐2010

Scranton, PA New Orleans, LA

10.0%

Pittsburgh, PA

10.0%

Providence, RI

8.0%

8.0%

Tampa, FL Worcester, MA

6.0%

6.0%

4.0%

4.0%

2.0%

2.0%

0.0%

0.0%

-­‐2.0%

1990-­‐1995 Max 10.7% Min 1.3% Median 2.8%

1995-­‐2000 7.2% 1.2% 2.6%

2000-­‐2005 4.8% -­‐0.7% 1.5%

2005-­‐2010 3.9% -­‐0.8% 1.4%

-­‐2.0%

1990-­‐1995 Max 12.7% Min 1.5% Median 3.6%

1995-­‐2000 6.9% 1.2% 2.7%

2000-­‐2005 6.7% 0.5% 2.7%

2005-­‐2010 4.5% 0.4% 2.1%

Data source: Geoly2cs Inc.


NIC 100 seniors housing supply penetration of 75+ and 80+ population, 1990-­‐2010 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 75+ penetration 80+ penetration

Source: Senior Housing Analy2cs, A Projec2on of Market Rate U.S Seniors Housing Demand 2010-­‐2030,, American Seniors Housing Assn., Winter 2013

1990 4.66% 8.81%

1995 4.73% 8.66%

2000 5.93% 10.81%

2005 6.49% 11.08%

2010 6.73% 11.02%


Projection of annual U. S. demand growth (based on 2010 supply Annual demand penetration for 75+ and 80+ population at 90% occupancy) growth (units/year) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 Source: Senior Housing Analy2cs, A Projec2on of Market Rate U.S Seniors Housing Demand 2010-­‐2030,, American Seniors Housing Assn., Winter 2013

10,000 0 75+ penetration 80+ penetration Midrange

2010-­‐15 19,839 16,620 18,230

2015-­‐20 36,777 21,714 29,245

2020-­‐25 64,721 46,628 55,675

2025-­‐30 71,451 81,737 76,594


Absorption, NIC 100: Maj. IL and Maj. AL communities Adj factor for Pe riod Total absorption nursing be ds: .97

4Q08-­‐‑3Q09 5,299

5,134

4Q09-­‐‑3Q10 11,260

10,911

4Q10-­‐‑3Q11 13,809

13,381

4Q11-­‐‑3Q12 14,115

13,677

Average 11,121

10,776

Est avg since 2010 13,580

13,159

Source: NIC MAP


Units open per year, 1990-­‐2010

50,000

Total

ILU

AL+MCU

45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Source: NIC

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0






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