Senior living providers can no longer afford to take a business-as-usual approach toward attracting new residents and expect to survive in this currently highly competitive senior living landscape. Our industry is shifting, adapting and evolving before our eyes for many reasons – new technology programming is increasing efficiencies helping with staff retention, resident expectations are higher than ever and the golden ticket to increasing profits and meeting your business goals is actually silver – as in the incoming wave of baby boomers, commonly known as the “silver tsunami.”
Baby boomers have changed the face of the U.S. population for more than 75 years and will continue to do so as they enter their senior years. By 2030, boomers will represent 20% of the U.S. population. In fact, baby boomers entering their senior years grows at approximately 10,000 per day, creating a demand for housing solutions that accommodate their lifestyles.
According to a recent U.S. Census, by 2030 all baby boomers will be 65+. It’s this demographic shift that makes active adult senior living communities a critical direction all providers must plan for in order to keep their doors open.
Beyond traditional senior living communities, which may provide independent living, assisted living or skilled nursing – active adult communities serve as more of a transitional residence to those 55+, who may be retired, and want high end resort-style amenities, programming and tailored services to meet their specific needs. Active adult communities may also include single-family homes, town homes, cluster homes, multifamily housing and manufactured housing.
There are two types of active adult communities, one of which has legal considerations: age-restricted, which must abide by federal housing rules and age-targeted communities, which do not have specific legal requirements.
CCL Hospitality Group (CCL) – not only understands the demands of today’s senior living residents, but as your strategic partner we also keep a vigilant eye out for trends and innovative solutions, focusing on hospitality delivery through culinary, nutrition & wellness and support services, enhancing our partner communities programming, and thus the quality of life for current and future residents.
One example is our partnership with Foodworks, providing us with opportunities to collaborate with local restaurants, promoting authentic regional and international cuisines. CCL makes a concerted effort to support local small businesses, creating meaningful engagement and experiences for residents. With a third of our restaurant partners being minority-owned and a quarter women-owned, our partnership with Foodworks reflects our dedication to diversity and inclusion.
From an astute forward-thinking provider’s point of view, for active adult communities, the risks are lower and so are the rewards. Active adult units turn over at a rate of 20 percent while typical multifamily properties experience turnover rates more than 50%, making the active adult model appealing to investors.
The U.S. active adult community market size was valued at USD 587.7 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.02% from 2023 to 2030. Increasing demand from baby boomers and growing interest from investors in senior living housing are actively driving the market.
Active adult communities provide an attractive option for baby boomers seeking a high touch, seamless living experience. For example, they are more tech savvy and research shows older adults engage in online activities such as liking and commenting on social media, 14% are online once a day, 65% several times a day and 12% almost constantly. They are also more sophisticated, well-educated and health and wellbeing is a priority for them – more so than for previous generations.
Baby boomers don’t want a one-size-fits all living experience and are seeking outside community connections, workshop and learning opportunities as well as programming that includes group travel or local day excursions. All of which creates a sense of belonging, promoting an active and healthy lifestyle, and offering a wide variety of opportunities for socialization, personal growth and above all – freedom of choice.
With all of these significant considerations in mind, CCL’s family of operating companies – Unidine, Morrison Living, Coreworks and The Hub, are the industry experts that can work with you to ensure you remain relevant and profitable, and prepare your community to strategically attract the right kind of residents.
CCL works with our senior living partners by making transparency a priority, while delivering on our commitment to providing exceptional culinary experiences and nutrition and wellness programs tailored to your unique residents’ needs and requirements.
Additionally, CCL ensures you are meeting your business goals and key milestones through utilizing data and analytics, talent management and operational optimization to work with you to make informed decisions today – and for your future success.
