Everyone seems to wonder whether the strong U.S. economy — which we all hope continues to chug along even though it’s hard to believe our good luck could possibly last much longer — will come to a crash or a controlled and gentle touchdown.
As for senior housing, the building boom seems to be aging as gracefully as could be expected, according to a new survey from American Seniors Housing Association (ASHA), Washington, D.C.
The annual construction report from ASHA says the number of senior housing projects being built in 2000 is 46 percent lower than the previous year. The number of units under construction this year also declined about 46 percent from last year.
Over the previous three years, a total of 1,960 market-rate senior housing properties have been built nationwide, comprising about 197,634 units.
“No one has been surprised by these survey results,” said David Schless, executive director of ASHA. “The study only confirms what we have been seeing.”
The most noticeable decrease came in the assisted living category with a 71 percent drop from the previous year in construction of free-standing facilities.
Over the last several years, assisted living projects have accounted for about three-fourths of all new projects built. The assisted living building boom peaked in 1998 when some 460 properties were built.
Schless believes the senior housing industry is just catching its breath. Developers are in the process of “digesting” the space they have already created, focusing on filling those units.
But Schless also notes that some of the demand for senior housing has been “soft” lately. New properties have not leased as quickly as they have in previous years. In turn, wary lenders are funding fewer projects.
“All of these factors have contributed to the decrease in construction,” said Schless.
Even so, new assisted living facilities account for about 51 percent of all new seniors-only projects. The majority of these properties offer skilled nursing care also.
Somewhat surprisingly, the survey shows an upswing in the construction of congregate care buildings. These communities typically offer no personal care, but some services such as meals and weekly housekeeping.
Schless says numerous congregate communities were built in the 1980s, but they fell out of favor in the 1990s when assisted living properties became hot. This year, the construction of congregate facilities increased 53 percent over the previous year.
“Congregate care is viable,” he noted.
The good news for seniors, Schless says, is that they have a number of housing options.
“We have an older population of 33 million which is very diverse,” he said. “You can find everything from senior apartments with few services to upscale assisted living.”
The survey also found that California has the most new senior housing projects being built, followed by Texas and New Jersey. The top three states represent over one-quarter of all senior housing properties under construction this year, the ASHA survey says.
Compared to other states, Illinois ranks ninth in the number of properties under way, with 11 projects and 1,107 units. Last year, Illinois was fifth on the list of states with the most new properties.
The Chicago area has the most properties (9) under construction statewide. The top metropolitan area for new construction was Los Angeles with 18 new projects.
Looking ahead, Schless thinks next year’s tally of new construction may be even lower than this year. He feels the same economic factors — tight financing and a large supply of units on the market — will be at work.
The overall state of senior housing was also recently surveyed by ASHA. Conducted for the last seven years, this year’s report found that seniors are staying longer in assisted living facilities. The average resident of an assisted facility lives there about 18 months, a longer stay than was found in previous surveys.
“This is positive,” said Schless. “There is an increased focus by property managers to provide more health care services at assisted living communities.”
Additional health care services allow many communities to keep the resident longer, which is usually the desire of the resident and the family, Schless says.
The survey also showed that rental plans are more popular than payment plans with entry fees.
About 94 percent of congregate care properties and 98 percent of assisted living facilities offered rental payment plans. Of continuing care retirement communities, 43 percent offered rental payment plans, while 47 percent had entrance fees as their primary payment plans.
Of existing seniors-only communities, the most can be found in California, Florida, Texas and Arizona. Illinois doesn’t even make the Top 10.
Resources
– After a recent column on moving, many readers asked for the names of services that help seniors move. Family Moving Solutions, Palatine, offers move coordination, furniture measurement, referrals for movers, real estate agents and other professionals, liquidation of unwanted items, moving day management and setup of the new home. For information, call: 847-705-2123.
Similar services are offered by Movin’ On, a company that specializes in helping seniors plan and complete a move. For details, call: 773-404-2936.
Local social service agencies, or the building to which you are moving, also often keep lists of movers and other professionals who can help.
– Presbyterian Homes of Evanston announced that it will purchase the Moorings of Arlington Heights, a 45-acre continuing care retirement community in the northwest suburb. The Moorings is currently owned by Advocate Health Care. The property has 465 residents. There are 235 independent apartments and 59 villas. The health care center includes 188 nursing care beds, of which 68 are assisted living care.
– The Courts at Conway Farms in Lake Forest offer homes with first-floor master suites, landscape maintenance and snow removal. The 50 single-family homes are situated on an 18-hole golf course. Prices start at $555,000. For more information, call 847-482-1400.
