The $113B Opportunity In Building Better Senior Living Communities

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We used to equate senior housing to sometimes-shady nursing homes with grumpy staff.

Its image has since evolved into peaceful, near-lux facilities where older folks can relax, get quality care, and socialize with each other.

Source: Yarn

Now large operators are spinning new tricks — like trying to connect seniors to the broader public, with the goal of fostering vibrant community life through intergenerational mingling.

In urban neighborhoods, they’re building (and marketing) amenities that blend a senior living community with the public, such as:

• Coffee shops
• Art galleries
• Theaters
• Community pools/event spaces

Sounds fun? Wait for the caveat. 

Quick Context

If you feel like there’s something off about a public-facing coffee shop in an old folk’s home…

That’s because it’s mainly a marketing stunt.

Assisted living facilities built in town centers, where a commercial coffee shop would survive, means that:

• The individual units are tiny and stacked on top of each other
• There’s little to no outdoor space
• The more in-need residents (older, under memory care, etc.) are bundled up with healthier 55+ folks, who do want to be closer to the action

Something for everyone… or is it?  Source: The Watermark at Bellevue

But hey, assisted living and memory care aren’t as lucrative and easy to market as a senior-oriented luxury apartment complex in the heart of a city. 🤷‍♀️

That’s also why these facilities are charging crazy fees and making it unaffordable for many families in need.

“We're on the verge of an assisted living housing crisis,” said Kristin Kenzy, founder of Robyn Bridge Senior Living. “We need to add 100k+ units into US inventory by 2030 to accommodate the needs of aging Boomers, and that’s just not gonna happen.”

Where’s The Main Solution/Opportunity?

Intergenerational housing, for starters.

It can be an effective solution to two problems: the loneliness epidemic among seniors, and the housing affordability crisis for Gen Z.

In the last 50 years, residents of these households have quadrupled. But it’s far from enough.

Some projects in Canada and The Netherlands are trying to build shared living quarters for students and retirees.

“We need to re-normalize intergenerational households, and provide products and services to ease US culture back into it,” Kristin said.

Currently, most communities aren’t designed for a diverse age group, so seniors still feel disconnected even if they’re physically closer to a younger crowd.

So developers can work with creative teams to reimagine these communities, and better integrate residents of all ages.

Some other opportunities:

Run Events for Community Venues

A coffee shop where people stop on their way to work might not be the way to integrate different generations.

But there’s still potential for the galleries, theaters, and other art & leisure venues built within these communities.

You can start a company that specializes in senior entertainment, like hosting gallery exhibitions, bringing in theater productions, or even running your own take on The Posh Club (a London social club where seniors party, 1940s-style).

Source: Common Wealth Theatre

Or, build an app for non-residents to book and use community resources, like pools, parks, and event spaces. Work with the site managers to ensure the public enlivens the seniors’ lives, not disturb them.

On-Demand Services

There’s no shortage of services in these places, but white space still exists:

Companionship

Papa is a platform that connects lonely seniors with “grandkids on demand” or “pals,” who provide companionship and do simple favors. You can build a competitor that targets young people who live close to, or within, these communities.

Besides, younger generations are drawn to “grandma” hobbies (or just want to relax in a retirement community), so they might even pay to come hang out with lovely old folks.

Transportation

Self-contained retirement communities are ideal for autonomous vehicle services because they’re easier to navigate, require lower speeds, and boast a strong mobility demand.

Last year, May Mobility rolled out self-driving minivans for a retirement community in Arizona.

Legal Help

Some of the residents might be thinking about estate planning or wills. We can see an opportunity for on-demand legal assistance when the need arises.

Final Note

Senior housing is a $112.9B market. Investors pumped billions into the sector, and despite a COVID slump, occupancy rates are now rising again.

It can be a good deed, as well as a great opportunity, to boost the living condition and care for aging Boomers.

But if you’re mainly in it for the bottom line, maybe the wealthy and healthy 55+ folks are more of your target market.

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