There are many changes coming to the senior housing industry, from more walkable quarters to communities that embrace technology. Another trend that we see creeping over the horizon is what many are calling “aging in luxury”. While many people view entering a senior living facility as an opportunity to downsize and get back to the basics, there is a whole other group of aging Americans that are taking a different approach. Developers across the country are catering to residents who are looking for high-end assisted living experiences, something that directly reflects our nation’s changing demographics.
Some of the first developments of this kind are popping up all over New York City, namely in Manhattan, with developers across the U.S. eyeing various locations that could also support high-end senior living communities. In Manhattan, developers have already spent hundreds of millions on high-end senior housing projects in the hopes that affluent and aging seniors in big cities will be drawn to this new concept. Experts predict that many Baby Boomers living in these areas would rather not leave their neighborhoods, as it could impact their cognitive abilities. With this in mind, senior housing developers are aiming to attract residents that are willing to pay to “age in luxury”.
What Are the Risks?
These new developments range anywhere from $12,000 to $20,000 per month in rent, a costly price that not many can afford. However, with the hefty price tags comes comfort, luxury, and all the amenities and space you could ever hope for. These units will undoubtedly boast uniformed doormen, beautifully landscaped gardens, and stunning architecture, but they will also offer special features that speak to the needs of seniors, such as brightly colored walls to support those with poor eyesight and lighting aimed to promote sleep.
Of course, the risk is that there won’t be enough residents interested – or able to afford – these luxury living apartments. In Manhattan, in particular, there are simply not enough memory care facilities to house senior adults with Alzheimer’s or other forms of dementia. These new luxury assisted living facilities are opening at a time where the market is oversaturated and we are seeing more and more people need this level of care. People in big cities like New York and Los Angeles are accustomed to a certain quality of life, and the majority of senior living communities frankly cannot live up to their expectations. They are not willing to compromise, creating the need for high-end developments like these.
In the past senior housing has largely been suburban-focused, but as we recently discussed, more people are interested in facilities that are both walkable and modern. As of right now it is too early to predict how these luxury assisted living facilities will fare, but it’s safe to say there is a market for it and we may soon begin to see more costly communities pop up across cities in the U.S. For more information on the current state of senior housing or if you are considering investing in a skilled nursing facility, please do not hesitate to contact Shep Roylance of The JCH Group.