The senior living industry is at an “inflection point” as it navigates a changing landscape that holds the possibility of significant transformation due to shifting demographics, evolving consumer preferences and the lingering effects of the COVID-19 pandemic, according to Argentum.
In its recently released 2024 Largest 150 Providers Report, the association laid out seven key trends that are shaping the senior living landscape: occupancy, integrated care models, technology, workforce, wellness, investments and sustainability.
“By addressing workforce challenges, integrating technology, prioritizing wellness and sustainability, and capitalizing on investment opportunities, the industry can position itself for long-term success and meet the growing demands of an aging population,” the report stated. “By staying attuned to market trends and proactively addressing emerging challenges, senior living providers can thrive in this dynamic and rapidly changing environment.”
Rebounding occupancy and demand surge are among the most promising developments this year for the senior living industry. According to the National Investment Center for Seniors Housing & Care, average occupancy in NIC’s primary senior living markets rose to 85.1% in the fourth quarter 2023, just 2.7 percentage points below pre-pandemic levels. And it rose even further, to 85.6%, in the first quarter of 2024, representing 11 consecutive months of increases.
The growing resident population also brings the challenge of increasing care needs, leading to a shift in the industry toward integrated care models offering a continuum of services within one community, according to the Argentum report. Driven by a desire to provide seamless care transitions and fewer disruptions to residents, needs-based assisted living is projected to overtake independent living as the most prevalent senior care option as operators expand their offerings to enhance the resident experience, create operational efficiencies and diversify revenue streams.
Prospective residents also are fueling a growing demand for wellness, lifestyle and personal enrichment options, according to the report. Operators are responding by incorporating fitness centers, wellness programs, and social and recreational activities, as well as concierge services that blend traditional senior living with high-end hospitality.
Technology is playing a key role in all of those trends, from voice-activated assistants to wearable devices to sensor-based monitoring systems to prevent falls. The Argentum report noted a greater emphasis in 2024 on leveraging data analytics and artificial intelligence to personalize care plans, optimize staffing levels and improve operational efficiencies. At a recent McKnight’s Meeting of the Minds virtual event, speakers stressed the importance of long-term care providers being informed about available AI tools and how they could affect care and operations.
NIC MAP Vision recently released a Senior Housing Outlook report stating that the senior living market is poised for significant investment, Despite economic uncertainties and increasing inflation and interest rates, the sector’s long-term growth prospects and demographic tailwinds continue to attract investors, according to the firm.
Argentum has promoted the value proposition of senior living, including its cost effectiveness, quality of life, improved health outcomes and high resident satisfaction through white papers sharing research on increased longevity for senior living residents compared with older adults living in the greater community.
The association’s largest provider report also addressed solutions to workforce challenges as well as sustainability and eco-friendly practices.
