Assisted Living is among the largest growth markets in the country, and market size is a leading indicator of investment opportunity. The larger the market, the more opportunity exists for investors to get their piece of the pie.
Besides market size, an investor would likely want to know how long the market is projected to remain large.
In other words, is this a short-term investment or a long-term play?
For those examining the assisted living space, this market is large and getting larger. It is a long-term investment with returns that can only increase. How so?
THE FACTS ABOUT INVESTING IN RESIDENTIAL ASSISTED LIVING
For those considering investment in the residential assisted living space, here are some facts that should both satisfy and intrigue your mind.
- In 2019, the assisted living market in the United States was valued at approximately $80 billion.
- The growth rate of this market is projected to increase nearly 5-percent over the next 7 years.
- The rise in Baby Boomers becoming seniors is propelling this market.
- Additionally, brain injuries are increasing and making the need for assisted living more apparent earlier in a senior’s life.
- While raucous and fun, Baby Boomers are not the healthiest and have chronic conditions that require attention and/or assistance.
A demographic assessment further cements both the necessity for residential assisted living and opportunity that exists because of these shifts.
- Globally, approximately 8-percent of the population is 65 years or older.
- This necessitates a need of approximately 1.8 million assisted living facilities over the 20 years.
- Gender data suggest more than 70-percent of residents will be women.
- Women have a longer life expectancy resulting in a longer occupancy.
- Women tend to have more chronic conditions, high disability rate and lower income.
- In terms of age, the median range is 75-85 years, with the latter dominating the market.
- Over 50-percent of revenue in traditional assisted living facilities was generated by seniors aged 80 – 85 years in 2019.
- This figure is projected to grow as life expectancy is increasing by over 5-percent annually among seniors over 75 years of age.
- Overall, In the United States, the number of people expected to become seniors will increase from 50 million in 2018 to over 90 million by 2060.
CONSIDERATIONS FOR INVESTORS
Investors should also examine the percentage of professional and/or skilled labor workers migrating to the area. This is also an indicator, as many adult-children make decisions pertaining to the care of their aging parents.
Communities experiencing expansive growth in young families will soon host aging parents. Residential assisted living is an ideal option for these families as many Baby Boomers want their independence, but not large facilities associated with sickness and death.
Some larger cities are home to many residential assisted living homes. These communities are especially suited for those with high disposable income. Residential assisted living offers many of the same amenities without the fear of being secluded in continuing care communities or nursing homes.
The idea of residential assisted living is to live in a home with others, ranging from 6 to 15 persons, where life is much as it was in a resident’s personal home.
There are exceptions. Housemates cultivate relationships with one another and care staff to ensure both safety and vitality.
With so much to be considered and analyzed, investors interested in the potential for exponential returns should connect with the Residential Assisted Living Academy.
This organization partners with investors to educate, train, and assist in the planning and networking needed to succeed in this rapidly growing market.
One cannot “go it alone,” therefore contact Gene Guarino and his staff of experts today.
THE NATURE OF THE ASSISTED LIVING MARKET
In the United States, assisted living facilities are expanding immensely. While this appears to be a positive sign, many of these facilities are associated with major corporations.
As a result, the consistency of care is often compromised by financial profits and losses – the corporation must come first in order to survive.
Mergers and acquisitions, joint ventures, and uneasy partnerships plague the traditional assisted living facility market.
A senior may not have chosen to live in one facility, but due to a merger may result in living under that banner anyway. Relocation is not always an option, nor is relocation always reasonable or good for the overall health of the senior. Yet, their happiness may very well be compromised, resulting in a decrease in overall physical and mental health.
This reality is only compounded by changes in management. Management changes affect the delivery of care and activities. In many cases, personnel changes and the residents become uneasy with new staff people.
On the other hand, the residential assisted living home is an independent enterprise.
While the owners may be associated with a network, the home is management and maintained by the owner and his/her investors. This provides a consistency in management and care, because these facilities are smaller, they are more resident focused and operate as a home, not a large facility.
Baby Boomers prefer residential assisted living homes for these reasons. They want independence, a home atmosphere, consistency in management and care, as well as residents. Baby Boomers are community focused and want to enrich the communities in which they live.
Understanding this dynamic market is no easy feat.
Partner with the Residential Assisted Living Academy to get a grasp of the current and future outlook of the assisted living market.
Learn how to build effective teams that deliver consistent care, which results in satisfied residents and families.
UNDERSTANDING TODAY’S SENIOR
The senior of 2020 is not the senior of 1980 – Baby Boomers are completely different altogether. As they were young; rowdy, revolutionary, transformative, they are as seniors.
Baby Boomers are determined to be seniors who:
- Remain relevant
- Politically active
- Technologically savvy
- Emotionally stable
- Financially sound
- Physically active
- Actively involved in their family
While Baby Boomers have an overwhelming desire to remain in their homes, they also understand the ramifications of such and do not want to burden their adult children.
Therefore, residential assisted living is a preferred option among them. Why is residential assisted living a preferred option among Baby Boomers?
Residential assisted living gives Baby Boomers the opportunity to be who they are. It gives them community, independence, physical activity, emotional support, healthcare, and access to their families without the rigorous rules and regulations indicative of traditional senior living.
How do you reach these seniors?
While traditional marketing efforts reap some benefits, the decision makers for senior housing are largely found online. Social media outlets lead the pack.
These are just a few of the outlets where most residential assisted living homes have found great success in reaching Baby Boomers and their adult children.
LEARN EVERYTHING YOU NEED TO KNOW ABOUT ASSISTED LIVING
Learning how to engage in this dynamic market is challenging. Success is a multi-pronged approach with effective teaming as a critical component.
Demographic research coupled with long-range planning is crucial to leveraging the investment and capitalizing on the opportunity for decades.
Do not try to “go it alone.”
Partner with us at the Residential Assisted Living Academy and allow a team of experts to teach you everything you need to know from A-Z.
You can successfully invest in the biggest growth market in decades – it’s time to get started now.