Adapting to the Live, Work, Retire Trend
As developers continue to adapt to the live, work, play evolution in communities, the live, work, retire trend advances across the nation. Retail property owners continue their efforts in attracting the senior-living sector to continue driving traffic to their centers. More than 10,000 baby boomers retiring every day by the age of 65 in the U.S., creating enhanced demand for new, amenity filled lifestyle communities.
Senior housing starts in Q2, 2018 totaled 4,083 units; 2,065 independent-living and 2,018 assisted-living units, a 3.3% increase since the first quarter with a projection of 28,000 new senior-housing units expected to be completed by the end of the year. Baby boomers continue to influence the senior housing sector with the desire live in a place where they are close to restaurants and shopping and to be within close proximity to amenities. In fact, baby boomers spend the most money across all product categories. As the live, work, retire trend continues to develop across the nation, existing retail property owners are looking to invest in senior-housing developments as a way to enhance their portfolio.
Here are the best places for senior-housing development across New England:
- Burlington, Vermont – Located in northern Vermont, Burlington offers an urban and artsy culture with easy access to outdoor activities. Burlington is made up of 42,260 residents. Vermont is getting older faster with 1 in 6 residents over the age of 65.
- Portsmouth, New Hampshire – Portsmouth was named “one of the most culturally rich destinations in the Country”. Filled with historic buildings, restaurants, and shops, Portsmouth consists of 20,579 residents, 2,820 of those are residents over the age of 65.
- Springfield, Massachusetts – Springfield is made of three counties including Franklin, Hampshire, and Hampden and is known for their village feel of living. There are 155,575 residents in Springfield, 18,906 of which are over the age of 65.
- Lewiston, Maine – Located 30 miles north of Portland, Lewiston has emerged as a peaceful, artistic community known for one of the best places to retire. One major attraction for live, work, retire balance in Lewiston is for retirees on a budget; affordable housing, spacious and affordable apartments and 19th century buildings. Lewiston is made up of 35,057 residents, 6,342 of which are over the age of 65.
Top 3 Trends Shaping the Senior Housing Industry:
- Provide Unique Amenities to Residents – Over the past few years, average occupancy rates in senior housing have been ranging 90-93%, however, owners would like to see that range in the mid to high 90’s, creating a competitive senior housing market. Natural features and destination are key to providing unique amenities to residents.
- Integrate Residents into the Larger Community – Developers are increasing the level of amenities offered at senior housing communities such as designing separate entrances to the facilities – one for the residents and one for the visitors.
- Allow Residents to Age in Place – Typically, senior housing residents have a desire to stay in their place of residence for as long as they can which has accelerated the makeup of 55+ communities in recent years. To support this desire, developers are building units with more space and elements that are suitable for modern senior housing.
The senior housing industry continues its robust accession amongst preferred product types for developers and investors across large MSA’s, secondary markets and territory markets throughout the country and across the globe. Amenity-rich environments that specifically address the wants and needs of an aging population will be the most successful communities.
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