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Rental Apartments for All Ages Are Competition to Seniors Housing

The report, "Understanding Seniors Housing Demand, Choices and Behavior: Insights From the AHEAD and HRS Studies," found that seniors who do not move into seniors housing communities do not necessarily remain in their homes. Instead, many often downsize and leave their “roots” by moving to apartments in non-age-qualified communities.

Of significance, the NIC report concluded that seniors tend to move into market-rate apartments open to all ages at a greater rate than they move into seniors housing.

In addition, it found that age-qualified residents who receive congregate care and assisted living services are substantially less depressed and less lonely than people of the same age renting in all-ages communities. The report also noted that seniors who live in age-qualified housing are happier than those who live in all-ages neighborhoods.

“This speaks directly to the quality of the product and will help adult children feel more comfortable in persuading their parents to consider moving into a seniors community,” said Robert G. Kramer, president of the Annapolis, MD-based NIC.

The report provides a range of insights for seniors housing owners and operators into the decision-making process, preferences and experiences of seniors when they consider moving to new housing.

For example, the report indicated that some seniors typically use part of their assets to supplement their income in order to cover their housing expenses, a finding that NIC has previously reported in other studies, Kramer said. As people age, they typically spend more money than they generate, meaning developers should not use income as the sole qualifier for an individual moving into a retirement community. Developers also need to look at how prospects will be able to monetize their homes and other assets before moving to seniors housing.

The report also identified opportune times to attract potential customers. According to NIC, the first opportunity arises when an individual initially moves from his or her all-ages neighborhood home, either from desire or need. The second occurs when that individual, after having made the initial move, is required to move again at a later date due to a need for care.

NIC analyzed data from two University of Michigan studies, the Health and Retirement Survey (HRS) and the Asset and Health Dynamics Among the Oldest Old (AHEAD), that reported on more than 22,000 occupants from 13,000 households. The residents were interviewed every two years. Topics included health, living environments, housing expenses and sources of personal income.

Margaret Wylde, of Oxford, MS-based ProMatura Group, LLC and a trustee for the NAHB Seniors Housing Council, prepared the report and compiled the data on behalf of NIC.

Copies of the new report, "Understanding Seniors Housing Demand, Choices and Behavior: Insights From the AHEAD and HRS Studies," can be purchased for $75 by calling NIC at 410-267-0504 or visiting the publications section of the organization’s Web site.

Learn More About Seniors Housing Through the Seniors Housing Council

To learn more about seniors housing, join the NAHB Seniors Housing Council. The council provides information, education, networking and recognition opportunities for its members and represents NAHB on seniors housing issues. For more details, e-mail Jeff Jenkins or call him at 800-368-5242 x8292.

BuilderBooks.com Has Publications About Seniors Housing

BuilderBooks.com offers a variety of publications about the seniors housing market. To view or purchase these publications, click here and type “seniors” in the search engine.

2004 Seniors Housing Symposium

To learn more about the seniors housing market, plan to attend the 2004 Seniors Housing Symposium, Building for Boomers & Beyond in Chicago from April 14-16. The symposium will focus on the lifestyle component of 50+ seniors housing.

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