As the senior living industry continues to expand, there is a significant opportunity for growth within the middle-market segment. This was the main focus of a recent National Investment Center for Seniors Housing and Care (NIC) webinar, where panelists highlighted the potential for serving middle-income older adults.
With demographic shifts and the availability of new payment sources, the senior living industry is on the cusp of a considerable opportunity. By 2033, it is estimated that 15.9 million seniors will fall into the middle-market category, presenting a substantial consumer base that current assisted living services are ill-equipped to cater to due to their high costs.
Facing fewer financial resources and closer family support, the incoming generation of seniors represents a demographic with unique needs. However, this presents an opportunity for senior living operators to adapt their offerings to accommodate a more equitable type of senior housing. It is crucial for the industry to define and cater to the diverse income levels and resource needs within the middle-market segment.
While the challenges are present, strategies for targeting the middle-market are being explored, including repurposing distressed properties, using innovative financing models, and implementing operational efficiencies. Scaling and replication of this model of housing will require public-private partnerships in order to address the emerging needs of the middle-market segment. Overall, the industry is looking at a historic opportunity to reposition senior housing properties to better serve the growing middle-market consumer base.
