The Times They Are A-Changing!
You might ask, what factors attribute to the continued growth and prosperity of the seniors housing market? The answer is simple. Successful owner/operators of assisted living, independent living/active adult, memory care and skilled nursing facilities continue to adapt to an ever-changing market. Today’s senior housing residents are not only tech savvy they expect to live the same lifestyle they are accustomed to in their home. If you are to succeed, you must anticipate what will attract them to your facilities.
There is no question that Senior Housing is a need driven business. At this point in time, only ten percent of potential residents are utilizing senior housing facilities. With the potential resident base growing as baby boomers age and need care, the need for active adult/independent living, assisted living, memory care and skilled nursing facilities should continue to thrive.
Changes in The Marketplace
As boomers begin to contemplate their futures, they are considering several factors; the type of care needed, price, and the ability to spend the rest of their lives in the place they choose are top priorities. What does this mean to operators? As new active adult/independent living, assisted living, and memory care facilities come online, it appears that most are targeting the high-end consumer, once again leaving most seniors few options to choose from. Smart operators are beginning to roll out, or at least contemplate, what type of product will attract this middle market consumer. Ideas proposed are “pod style” living where residents typically have their own bedrooms but share living rooms and restrooms. Another suggestion is perhaps providing less expensive furnishings and fewer or mixed-use common areas. The idea of active adult or independent living units are making a comeback. Also, the rise of multi-level campuses with a combination of assisted living/memory care or independent/active adult coupled with assisted living are a hot commodity in today’s senior housing marketplace for both buyers and potential residents alike.
Skilled Nursing facilities are adjusting to the new PDPM payment model which was rolled out in October. Small mom and pop operators may find it difficult to adjust to the new reimbursement model and still make a profit. The appetite of skilled nursing buyers is still strong despite the changes.
REITS and Private Equity firms continue to be active players in both skilled nursing and assisted living sectors choosing regional operators rather than national operators to run them.
Why Choose JCH
For the past twenty years the senior housing industry has experienced immense change and growth. The JCH Group has brokered hundreds of transactions and witnessed present changes influencing the future. Senior Housing investments don’t necessarily look like what they used to, and the senior housing industry has matured in unprecedented ways.
The JCH Consulting Group is the top brokerage for your senior housing investments in the senior housing industry. With over 110 years of combined experience, our specialists are unmatched in acuity and experience, and we have the track record to prove it.
Make the most of your senior housing investment. Call the experts in the senior housing industry by contacting The JCH Group. We can help you navigate the process as you choose to divest or invest in the senior housing sector.