Senior Housing Market Adjusting to Post COVID-19 Reality

Until a few months, one of the more lucrative construction markets was that of senior housing. The rising population of older Americans – many of whom are relatively affluent – offered builders and other construction professionals with an opportunity to housing that provided the features for aging-in-place without necessarily sacrificing comfort or aesthetics. Many of these housing units were in senior communities that catered to the needs of the older Americans – some residences provided assistance to those with medical needs, while others simply offered seniors such social amenities as group outings and cultural events.

Then the COVID-19 pandemic hit.

Almost overnight, facilities that were once heralded as the pinnacle of senior living were regarded with suspicion as sickness and fatalities entered the picture. Many Americans tried to move older adults out of these residences, while potential future tenants stayed away. Indeed, a recent report shows just how deep the damage was to this sector: residency rates at assisted living and other similar facilities saw record low levels in May 2020.

Will the industry rebound?  Many are guardedly optimistic, citing:

• the ongoing need for assisted living as more Americans grow older and require some level of help – while preferring to remain as independent as possible
• the expectation that the COVID-19 will eventually recede
• a high level of interest among “active adults” in living in communities better suited to their needs
• industry efforts to ensure the health and safety of residents and workers, such as by adopting strict quarantine, visiting, and social distancing policies

For more information about senior housing and assisted living, check out the Freedonia Group’s publication, Elder Care Services in the US.  For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.