More than half of middle-income seniors won’t be able to afford seniors housing and out-of-pocket medical costs by 2029, according to research conducted by the non-partisan organization NORC at the University of Chicago.
Even after tapping their home equity and other resources, these adults aged 75 and older would still come up short of the estimated $60,000 needed annually.
The middle-income senior cohort is expected to expand to more than 14 million in ten years, pushing the housing demand upward. Those who align with this market could find growing and untapped potential.
The research projected 6.6 million seniors could afford seniors housing but if costs were cut, millions more could benefit. A reduction of $10,000 in annual expenses expands this market by 2.3 million middle-income adults 75+. Another 3.6 million people could afford seniors housing if costs were reduced by $15,000.
The study, sponsored by the National Investment Center for Seniors Housing & Care (NIC) was shared at the recent NIC Investor Summit.
The researchers included these cost-reducing strategies:
Offering more basic housing products
Better leveraging of technology
Subsidizing middle-income residents with higher-paying residents
Adapting existing properties for new uses
Developing innovative real estate financing models
Decreasing the annual cost of seniors housing is of course a challenge, but meeting the demand of the growing middle-income market could also present a huge opportunity.
If you’d like to discuss this or other strategies to improve profitability and reach your business goals, please call (312) 896-0123.