Over the last few years, developers have been building senior communities in anticipation of the aging baby boomer generation. However, there’s simply too many (especially right now in 2020) which means there is a great deal to be had for you or a loved one. Make sure to check all available offers across senior living communities to make sure you get the best fit for your lifestyle and price that matches your budget!
Drastic Overbuilding Is Common Across the Country
Developers and senior community development owners have added thousands of new locations across the country in anticipation for the upcoming senior boom. It’s true – soon seniors will make up a large portion of the population as the Baby Boomer generation matures. And, these developers, hoping to capitalize on that increasing need, have built a large number of senior living communities.
To take advantage of the aging population, there’s been a significant amount of over-building in senior housing developments throughout the country. That means this surplus of housing options for seniors – many of them with top-of-the-line amenities and spacious designs – is now available and waiting. With so many property options out there, many of these communities have become desperate to fill vacancies just to recoup the money they put into these properties. And, that’s where the true opportunity lies for today’s senior.
What’s the Real Cost of Senior Housing?
Some seniors may believe they still can’t afford to invest in a senior living community like this. It’s true it was an expensive transaction at one point. The Department of Health and Human Services states that the average cost of an assisted living facility can range from less than $25,000 a year up to $50,000 a year, depending on location and the amenities available there. Others, including those with limited amenities and basic features, typically cost $8,000 or more, and costs are rising1. That could seem like a lot of money for a senior who is on a fixed budget. But, those costs may not be as accurate as they seem going forward.
Rather, there’s a growing number of senior housing vacancies that are putting a financial strain on property owners. These owners need to be able to meet compliance requirements in regards to staffing. They have to maintain their properties in order to attract a senior population with some of the most luxurious of tastes to date. And, they need to entice people into these communities with savings opportunities. All of this adds up to one thing – a significant drop in prices just to fill open rooms.
Now Is the Time to Take Advantage of the Gap
It’s important to see the largest picture here when it comes to senior communities. The National Center for Assisted Living says there are 28,858 communities in the U.S.2 That seems like a lot of locations, especially when you consider that these locations already house about a million senior citizens right now.
The Population Reference Bureau says that the number of Americans over the age of 65 will double from 46 million to 98 million by 20603. This increase is what has encouraged developers to build now. These properties will be necessary within 10 years to keep up with demand. Developers cannot wait until 2030 to start building. They need to do so now.
However, that has created a gap – between what demand is right now and what demand will be in 10 years. Imagine a senior who is 65 years old right now. That person has the ability to fill one of those vacancies with ease. And, in doing so, he or she can take advantage of the amenities at the location, usually enjoying a higher quality of life. However, because these locations are still so limitedly filled, this is also the time to take advantage of affordable prices – long before the rest of the senior population is ready to move into these properties.
Senior Living Deals Are Out There – Now
Some areas across the country have already seen an increase in the number of people retiring. This includes areas of California, Arizona, and Colorado. And, some seniors are headed overseas to areas such as Thailand and Malaysia to take advantage of tax-free living. For those remaining here in the U.S. and just thinking about retirement communities, now may be the time to make your move.
Right now, prices remain competitively low. As demand for senior living communities rises – which we know it will happen as more people age into the population – prices will also increase. For those thinking about making a move, this can be a powerful bargaining tool. It is also possible to find properties in just about any area of the country interested in offering a savings option for you if you plan to move in sooner rather than later.
As a senior, or soon-to-be-senior, it may be time to start some research to find the next home for your life. With incredible amenities and some areas that are better than expected in terms of features, this is the place to be in the market. For seniors who are likely to wait a few more years, though, expect prices to be a bit higher. If you’re interested in senior living communities that are truly affordable, start your search today.