Senior Living Cottage Expansions Gain Appeal As Development Remains Tough

As the senior living development continues to face challenges, some companies are finding innovative ways to build scale and cater to a new generation by incorporating cottages into their campuses. These cottage units can serve as a stepping stone for seniors entering senior living for the first time, and also meet the price point preferred by baby boomers. They provide an opportunity for growth without incurring redevelopment costs, due to their small and standalone nature. Cottages offer more space and amenities compared to traditional residences, attracting new residents who are transitioning into senior living. Additionally, they are more affordable and appeal to the middle market. As operators seek to lower overall senior living costs and capitalize on demographic demand, the popularity and growth of cottage units is expected to continue in the coming years.