Senior living communities provide the older adult population with safe, secure, and comfortable accommodations in their retirement years. They also provide savvy real estate investors with multiple investment opportunities.
So, how do you know which one of the many senior housing communities to choose for your investment portfolio?
We’ve explained all you need to know, right here. You’ll discover the different types of retirement communities, plus the services and levels of medical care they provide.
Residential options don’t decrease as a senior citizen. There are several types of retirement communities to choose from across the U.S.
The various retirement communities and senior living facilities cater to the different activity levels, interests, and health needs of seniors. Residents may move on to other senior living options as their activity levels decrease and their medical needs increase.
Here are the most common types of retirement communities you can invest in.
Retirement doesn’t have to mean giving up freedom and independence. Independent living allows seniors to move into a new home with all the comforts they are accustomed to. All that’s different is that the units or apartments are situated within a community designed for retired and senior people.
The independent living option is ideal for seniors who are still healthy and active. Housekeeping, meals, and transport services may be offered for residents’ convenience. However, the emphasis is on convenience more than care.
Residents can make new friends in the community and visit them in their apartments. They can also receive visits from their families and continue with their hobbies and interests.
Most older adults want to remain as independent as possible. Unfortunately, completely independent living is not always feasible during the later years. Failing health and mobility issues can make living alone difficult and even dangerous. Fortunately, there’s assisted living.
Assisted senior living communities offer seniors principal care management and a variety of services that assist with the activities of daily living (ADL). ADL services may include administering medication, financial management, and other support.
No matter if you’re in Costa Mesa, California or Dallas, Texas, in Aventura, Florida or Louisville, Kentucky you’ll find options for investing in assisted living facilities for seniors. Indeed, these are some of the top locations for luxurious assisted living facilities.
As seniors age, their health, mobility, and cognitive function may decline. This necessitates moving on to more advanced levels of care. However, it can be unsettling to have to keep moving to new facilities.
Continuous care retirement communities (CCRCs) solve the problem. They serve the needs of seniors who want to stay in the same place during the different phases of the aging process. These facilities incorporate assisted living, skilled nursing care, and more when necessary, without moving off premises.
This is a long-term option that offers seniors the comfort and emotional security of remaining in the same general surroundings.
Sometimes seniors are just looking for a great place to live, one where retired people can continue to live independent lives with less home maintenance. An active adult community fits the bill.
An active adult community is a neighborhood designed for a less stressful life at retirement age. It features low-maintenance residences from condos to single-family homes, for rent or to purchase. Senior living independent communities are often gated, with security guards and 24-hour surveillance.
Garden services, home maintenance services, and other amenities mean residents can simply enjoy their retirement without worrying about home and lawn upkeep. Social activities are also on offer, enabling residents to continue enjoying the same interests as before, or even start new hobbies.
Age-restricted retirement communities are designed as senior living communities, although residents don’t all have to be 65 or older. This is ideal for seniors who wish to live in a retirement community with a younger spouse, partner, or relative, and those who have retired early.
That said, there must be at least one person aged 55 or older in at least 80% of the occupied residences. This is an exception allowed for in the Fair Housing Act, regulated by the U.S. Department of Housing & Urban Development.
Lifestyle retirement communities have much in common with independent living and active adult communities. They have highly social aspects and high-quality amenities that make the retirement years active and fun. However, they are based around specific interests.
Golf is a popular activity at the heart of many of these lifestyle communities. Senior living communities, but there are all sorts of lifestyle communities to choose from. These communities often cater to people who, although retired, are not over 65.
Families choosing a senior living community for a loved one know that it is not a quick and easy decision. There is a lot to consider.
The different types of senior living housing communities offer different residential experiences and levels of independence. And because the senior citizen community includes people with differing health statuses and levels of mobility, these facilities also offer different levels of care.
The same applies to choosing a senior living community for investment. Different residential experiences and levels of care typically have different levels of local demand, too. If you choose to own and operate one of these communities, you will be expected to meet these levels of care.
Personal care homes offer a comfortable living environment for seniors who need help with daily activities but don't require extensive medical care. Residents can expect help with bathing, dressing, meal preparation, and medication management.
Like personal care, assisted living facilities offer help with daily activities. However, they are designed for seniors who need more medical care than personal care homes provide.
At nursing homes, or skilled nursing facilities, senior residents are helped with bathing, dressing, meals, and other daily life activities. This makes them similar to personal care and assisted living senior communities.
However, nursing homes offer more medical care than assisted living and personal care homes do. Seniors often move from assisted living or personal care facilities to nursing homes as they age and their health declines. Here, medical professionals care for residents with disabilities or chronic illnesses.
Memory care facilities offer many of the same services as other senior living communities. There is one distinct difference, though. They are suitable for patients who are suffering from cognitive decline and conditions like dementia or alzheimers.
Sadly, these are common challenges for the senior population, requiring expert care. Based on current data, it is estimated that by 2030, there will be 8.5 million people aged 65 and over with Alzheimer's in the U.S. This means that the demand for enhanced memory care will continue to rise.
Unlike other senior living communities, hospice care facilities are focused on end-of-life care. They offer seniors dignity, comfort, and specialized medical care in the final stages of their lives. Hospice care is sometimes included at home or in retirement communities, but is often a special care facility.
In your search for available senior living communities to invest in, you’ll quickly realize that location plays a big role. Some areas have higher senior populations and thus have more senior living options. This is due to supply-demand dynamics, common with all types of real estate.
The neighborhood your senior living community is based should meet the basic needs of an older population:
What can seniors expect from the senior living community they choose? It depends on the type of facility.
If you choose to directly invest in senior living, you need to market your facility to the right audience. For example, an independent living or active adult retirement community is not suitable for seniors with mobility issues or a chronic illness.
Have another look at the types of retirement communities and levels of care listed above. This will guide you in your marketing efforts so that your senior living community meets your target market’s expectations.
A look at the data obtained in the last U.S. census shows some interesting facts about the older population.
From 2010 to 2020, when the last census was taken, the population aged 65 years and over saw the most growth in any decade since 1880. As citizens of the Baby Boomer generation continue to age, the older population will constitute an increasing share of the total population.
If you have been sitting on the fence about investing in senior living communities, now is the time. If you leave it to the last minute, you will be competing with other investors eager to snap up the best retirement facilities.
So, how can you make the right decisions about direct investment in senior housing and be well-prepared for the future?
If you are not quite ready for direct investment, this does not mean that you can’t invest indirectly. Indeed, purchasing shares in senior living housing communities can provide you with an affordable and hassle-free alternative.
As demand for senior housing continues to rise, a senior housing investment can also provide a good income stream in your retirement years.
Many investors consider it an excellent choice for portfolio diversification. There are different ways to invest in senior housing, from direct property investment to indirect investment through shares in real estate investment groups and trusts.
This is a type of real estate investment that is typically stable, less prone to market shifts. However, investing in senior housing, as with any other type of real estate, requires solid data and intelligence, and expert insights. This will allow you to make informed investment decisions, even as an absolute beginner.
Senior House offers all of this and more. You’ll always be up-to-date with developments in the senior housing market. This will help you to invest more confidently. It will also help you to choose the right senior living community when your next stage of life arrives.
The Senior House platform gives you the tools you need to support your growth strategy. You’ll enter your golden years making more confident decisions for your future.
If you are a property manager or keen on breaking into the exciting world of property management, the senior living sector offers you many opportunities. You can manage the admin and accounts, oversee maintenance, and schedule social activities for the residents.
Managing a retirement village or senior living facility is work, but also very rewarding. And with expert insights into the senior housing market, you’ll always be prepared.
Senior House offers detailed data analytics, intelligence, and market-related news for everyone in the senior housing real estate market. You’ll know what trends to take note of, what changes to make to increase occupancy, and how to remain competitive.
All people are unique, and this does not change as they age. That’s why there are different types of senior living communities. Whatever their abilities or interests, every senior will find one that fits their lifestyle.
If you’re looking for this diversity in your investment or career opportunities, the senior housing market offers that, too. However, you can only make an informed decision with the right information. That’s where Senior House can help.
We offer the latest data and insights for anyone looking to get involved with senior living communities. Contact us today to get more information about our platform and resources, or to book a demo.
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