Friday Feature: What Baby Boomers Want

Soon the target customer for most senior housing options, primarily independent living and CCRC/Life Plan will be folks born in the “baby boomer” generation. Boomers are folk born between 1946 and 1964, placing them today, between 76/77 and 58/59 years of age. They were born right after WW II and right at the beginning of the height of the Vietnam War.

Today’s prime market for senior housing remains the Greatest Generation or folks born during the WW II period. Coincidentally, this era is also a “baby bust” period as demographically, birth rate was suppressed by war. As the prime demographic for most senior housing is between 78 and 82, Boomers are just starting to now, trickle-in.

A report released this past Tuesday by the American Seniors Housing Association shares interesting insights into who the Boomers are and what will they want in terms of seniors housing. Contained in the report is data on the demographic, families, living preferences, and location preferences. The date corresponds similarly to a NIC (National Investment Conference) report on active adult housing interests and options released last fall (2022). NIC reference material on this subject is here: https://content.nic.org/ActiveAdult

The report aggregates data from 7,000 respondents, 80% were Boomers. The data was collected between December 2021 and March 2022. It is important to note that the data will be influenced by COVID experience.

The largest group of respondents were between 75 and 79 years old. People 55 to 74 were about half of the group. Other demographic features are,

• Two-thirds live in the suburbs, 23% live rural, and 11% live in an urban setting.
• A third of the respondents reported living with another person (likely spouse). The average respondent had 2.5 children and 22% said they have no children.
• Almost 60% said they were considering a move to senior living (some form) in the next four years. 69% said they would include senior housing as an option while 31% said senior housing was a preference.
• In terms of a move location, 27% said they would move within 15 miles of their current location, 33% said they would move between 15 and 40 miles, 30% said they would move between 40 and 999 miles, and 11% said they would move 1,000 miles or more.
• Home equity remains the primary source of funds for the move.  One fifth said their home values were less than $200,000 and two-thirds said the value of their home was between $200,000 and $750,000.
• About thirteen percent said they were currently having difficulty with one to three (or more) ADLs (Activities of Daily Living), including climbing stairs, cleaning, and driving.

What Boomers want is not too different from what other senior cohorts have wanted.  The primary objective is to remain independent and self-sufficient (92%). They value independence and self-reliance. Interestingly, only 25% said they wished to remain in their own home.

Of amenities, full kitchens, in-unit laundry with laundry rooms, living rooms, plenty of natural light, and additional storage were the top five. 83% of respondents said exterior maintenance, 24-hour security, and maintenance of interior appliances, etc. was a requirement or at a minimum, important. Only 44% said smart home features (remote lighting, security systems, etc.) were important.

In terms of care, 55% said they would prefer care in their residence vs. in another location.  Only 7% said wanted to receive care in another community location.

What is interesting about the Boomers is that they don’t deny their aging and are willing to consider senior housing of some form, as an option.  It appears however, that locations that can provide in-home care and support will be more desired than locations where additional care is only available at another location (within the community).

Going forward, the important thing for providers and developers to understand is that “wants and desires” are one thing but only that.  Until tested by price, the features desired may become features that are unaffordable.  Boomers will not have the same economic wealth in many cases, as their parents/the prior cohort.  For senior housing, this reality is key as costs heavily influence demand.  Senior housing demand is highly price elastic.  As such, demand for any type with amenities, will ebb or flow based on cost.

TGIF!