Many senior living communities across the country have been battered by recent economic conditions, dealing with factors such as an extended recession, a struggling real estate market, and fluctuating reimbursements, reports U.S. News: Money. Some communities have turned to developing new business models, including expanding services to care for seniors in their own homes.
Necessity is clearly the mother of invention for senior housing operators. The numbers of new living units at high-end CCRCs have been very small for several years. The normal funding mechanism for six-figure CCRC entrance fees has come from people selling their primary residence. With housing values on a five-year skid, older homeowners have either been unable to sell their homes or unwilling to sell at depressed prices.
At the same time, aging seniors are showing less interest in moving into a CCRC so long as they can maintain active lifestyles in their own homes. Meanwhile, government spending curbs have reduced profits at many nursing homes, and threaten its basic business model.
As financial pressures rise on senior living institutions, it’s also clear that tomorrow’s market includes big increases in seniors aging in place in their homes. Surveys show that seniors overwhelmingly prefer to stay in their homes and adjacent communities. And private and government care programs increasingly prefer home-based care as more affordable.
The article lists a couple examples of senior housing and care providers who are developing models to export care services into seniors’ homes. Read the full story here.
Written by Alyssa Gerace