Understanding the Senior Living Market

American seniors want to age in place comfortably, confidently, and with dignity. After all, they've earned it. There's an increasing trend toward independence in senior living. While many seniors and their families realize that moving to a more supportive community may be necessary, they don't want to give up the autonomy and dignity they enjoy in their own homes. The "nursing home" era is over. That's why the current senior living market is focused on vibrant communities that offer access to support, recreation, and opportunities for socialization. Are you a real estate agent looking for ways to appeal to senior buyers? Here's a look at the top trends to know about.

In 2023, the senior living market in the United States was estimated at just over $923 billion. Analysts expect the market to expand at a compound annual growth rate (CAGR) of 4.6% between 2024 and 2030. The growth is owed to the nation's increasing elderly population. There are currently more than 62 million adults aged 65 and older residing in the United States. This demographic accounts for roughly 18% of the country's total population. Rising life expectancy means that the need for living communities designed to help seniors flourish has never been higher.

Today's seniors want assisted living options to provide safety and support as they deal with emerging physical and cognitive health issues. However, they don't consider the medicalization of aging to be the main theme of their lives. They instead want to embrace wellness in senior living! What does a shift toward wellness look like in the senior living market? 

Seniors want to feel like they are moving into communities where they are being set up to thrive for many years to come. That's why communities with fitness programs and amenities are so attractive right now. Seniors are increasingly choosing homes and communities offering access to:

• Yoga and fitness classes
• Opportunities for socialization
• Tennis courts, pools, and fitness centers
• Walking clubs

One aspect of senior assisted living that is fairly new is the emergence of services that focus on mental health and social well-being. Today's seniors are aware of the loneliness epidemic facing their age group! Polling from the University of Michigan's Institute for Healthcare Policy and Innovation found the following:

• One in three adults aged 50 to 80 (34%) reported feeling isolated from others in the past year. That's up from 27% from a similar poll in 2018.
• More than one in three older adults (37%) reported feeling a lack of companionship in the past year. That's up from 34% in 2018.
• One in three older adults (33%) reported infrequent contact with people from outside their home. That's up from 28% in 2018.

Mental health is a significant concern for today's aging population because of the well-known link between social isolation and longevity. You may have heard by now that feeling lonely is actually worse for you than smoking! Research shows that living alone makes older adults more vulnerable to loneliness and social isolation that are associated with higher risks for a wide range of health problems that include heart disease, depression, and cognitive decline.

Seniors don't want to be shut off from their communities. The reality is that moving from a traditional neighborhood setting or beloved family home is a big transition. There was a time when senior living communities involved isolated apartments or residences. In the modern senior living market, seniors care just as much about shared spaces as they do about their own units. In fact, in-demand senior living communities today are nearly indistinguishable from resorts or rental communities geared toward millennials and other younger generations.

There was a time when assisted living facilities were seen as utilitarian. However, the baby boomers are changing that by demanding luxury. Most economists agree that the baby boomers are the wealthiest generation that's ever lived. With home values reaching uncharted levels of the past few years, many boomers are moving into assisted living facilities after selling homes in high-value areas. Many are also easing into retirement with generous pensions or investment accounts. As a result, they simply have more choice when it comes to where they want to live compared to every other demographic.

Today's seniors want outings and day trips! When senior living options are located far off the beaten path, this can be isolating. The baby boomer generation is the independence generation. That's why they're choosing senior living facilities close to parks, shopping, restaurants, coffee shops, and more in metro areas like San Diego. For those who do choose communities located in more suburban areas, there's an emphasis on looking for transportation options for organized or on-demand outings. Additionally, today's seniors are more interested in living in multigenerational neighborhoods compared to seniors of the past. They don't want to feel like they are being hidden away from society in their own isolated bubbles. The more youthful attitudes of boomers make it difficult for them to feel like they are part of a "senior citizen" class that is disconnected from other generations.

Did you know that 24% of all pet owners in America are baby boomers? Seniors are not willing to give up pet ownership when they transition to supported living. That's why rules allowing pets can weigh heavily in the decision-making process for millions of seniors today. More are looking for senior living facilities that allow pets. It's an even bigger bonus if a pet-friendly senior living facility also offers dog-walking services or mobile pet grooming.