Battle for Younger Seniors creates new models and fragments the market

Senior housing occupancy fell to eight-year lows last year. While experts express confidence those rates will reverse course as construction starts shrink, competition for younger boomer rents is ramping up in a big way, and that could spell trouble for more traditional independent living options. New active adult concepts such as Margaritaville are creating new types of retirement options for boomers who are turned off by the notion of “senior living.”
Another trend that can fragment the senior housing market is overall multifamily development. With most seniors living longer, healthier lives, they are delaying entering independent living and opting instead to move to newer apartment developments with an intergenerational mix of renters. Smart home tech, on-demand services available through a few taps on the phone, and home care aides can combine to enable apartment living for longer periods of time. Until developers address these challenges, the market will only become more fragmented.