10 Years Till The Senior Housing Boom
Outsiders looking into the senior housing industry know all about Baby Boomers’ resistance to “old folks homes.” But those on the inside are far less concerned with Boomers’ prejudices than their pocketbooks. Key Bank SVP Brian Heagler shares his thoughts on the changing, but still recession-resistant, senior housing industry. To hear more from Brian and many other industry leaders, join us at our Senior Housing event on June 22.
Despite a natural lull in the market due to the end of the Greatest Generation’s entrance into senior communities, the industry remains active and will strengthen when Baby Boomers enter senior housing. The oldest Boomers turn 71 this year, and the youngest turn 52. Most senior communities are seeing residents move in during their mid-80s.
But Brian (and other senior housing execs) wonder if Boomers will reshape senior housing the way they have changed so many other aspects of society. Brian (above with his wife) has been hugely active in the space: in 2015, Key Bank Healthcare Real Estate was responsible for more than $10B of capital raising activity in the senior housing market—including The Traditions-Lovers Lane in Dallas.
Attracting Boomers goes beyond resort-like amenities. Boomers want choices. They want to pick where, when and what they eat and have options to participate (or not) in many community activities. Plus, healthcare amenities must be stellar.
“Not only must we be warm and inviting, but we must be highly functional,” Brian says.
Senior housing communities must also get creative to increase penetration rates. They’re trying to get more people into facilities earlier and longer.
But perhaps the topic senior housing leaders tune into most surrounds affordability. The Greatest Generation and the Silent Generation are savers, children of the Great Depression and professionals with pension funds. Baby Boomers? Not so much. Boomers are spenders and children of the New Deal. As for pension funds, RIP.
So what will happen when Boomers begin to enter senior housing in 10 years?
“Making the product less expensive and more efficient—and ultimately more affordable—is a huge consideration,” Brian tells us.
If you figure out the solution, you might earn yourself a pick from DFW’s best senior housing facilities. Until then, hear more from Brian and other industry gurus at our Senior Housing event on June 22. Register here.