Although the competition between facilities for residents and employees creates a headwind for the industry, it is important not to lose sight of the simple fact that time and demographics are on the side of senior housing owners and operators. Jane Adler at Seniors Housing Business recently shared some statistics from the Family Caregiver Alliance that should help us all sleep better at night (at least as to the health of the industry):
- The lifetime probability of becoming disabled in at least two activities of daily living, or of being cognitively impaired, is 68% for people age 65 and older
- By 2050, the number of individuals using paid long-term care service in any setting (at home or in an assisted living or skilled nursing facility) will likely increase to 27 million (compared to 13 million in 2000).
- Among the population age 65 and over, 69% will develop disabilities before they die and 35% will eventually enter a nursing home
Of course, the key to this oft-called “Silver Tsunami” translating into residents and profits will be these seniors having the savings or private medical insurance to cover the care they need.