By: John Ruffier
For years, the senior living industry seems to have paid a lot of attention to ever-more-opulent facilities offering amenities akin to a five-star hotel. With those luxurious surroundings come high price tags which are out of reach for many potential residents. Tim Regan of Senior Housing News recently authored an article suggesting that the middle market may now offer the best opportunities for growth in the industry and present an attractive product to potential lenders.
The article notes that, to attract the middle market, “operators must charge a low enough rate that middle-income residents can afford, but one that is high enough to carry the right margins to make it a profitable endeavor for operators and owners alike.” The article goes on to suggest that the path to this middle ground success can be gained by acquiring existing, older communities in need of a refresh. With the impact of COVID-19 on operations and occupancy, those looking to sell are being faced with discounted values that make such an approach possible.
Another interesting approach is offering “independent living light” where residents can “age in place through the use of technology and partnership with service providers.”
As the senior living industry emerges from the trials of COVID-19, it seems that opportunities abound for those that are innovative and ready to seize the opportunities that are available.