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Sector Maturation
from 2023 Trends Report
by Catalyst
TO REACH A “YOUNGER OLD” DEMOGRAPHIC WITHIN SENIOR LIVING, RETIREMENT COMMUNITIES ARE KICKING UP THEIR AMENITY OFFERINGS:
“It is an exciting time in the senior living industry as the sector matures and product offerings become increasingly differentiated. Much like the hotel industry, with offerings from Motel 6 to the Ritz-Carlton, operators, developers, and capital providers are increasingly segmenting the senior housing market by both price point and service offerings. ‘Active adult’ offers amenitized rental housing for the ‘younger old’ cohort seeking community involvement, lifestyle, purpose, and connection. The ‘Forgotten Middle,’ a term coined by the National Investment Center for Seniors Housing & Care (NIC) in its 2019 seminal study that assessed and quantified the need for more affordable housing and care options for middle-income seniors, offers care and housing options for the value-minded older adult consumer. And ‘ultra-luxury retirement communities’ offer older adults high-end concierge lifestyle living options with wellness centers, five-star culinary options, entertainment, and A-list cultural events. And, of course, the traditional senior housing product remains, with a price point that falls between the two and offers a value proposition of security, socialization, engagement, room and board, care coordination, and lifestyle.”
2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 42
