With the United State’s 65+ population set to double by 2025, the retirement communities sector has a strong upward trajectory and is expected to generate revenues of nearly $70 billion in five years’ time.
Market research and analysis firm IBISWorld forecasts the retirement community industry’s revenue to increase at an annual average rate of 5.4% to $69.8 billion by 2018. Boomers’ demands and expectations are expected to bring dramatic changes to the senior living industry.
“In the coming years, active baby boomers will command a new kind of retirement living, one that is vastly different from that of their parents,” says the report.
Many seniors consider designated retirement and assisted living communities “a refuge of last resort,” and to counteract this perception, according to IBISWorld, operators are offering more modern and amenity-rich residences with new architectural designs and technological advancements.
Home-like designs that implement better and more creative use of light, sound, water, and greenery to enhance socialization areas are examples of architectural features IBISWorld expects operators to implement.
Technology’s role will likely increase as well.
“More living spaces will have instant voice and visual access to family and friends, and facilities will feature access to a wider variety of medical sources, ranging from physicians to nutritionists,” the report says.
With baby boomers approaching retirement age en masse, there are other opportunities for lenders, investors and entrepreneurs in more industries besides senior housing.
The sheer size of the boomer generation, at 78 million strong, translates to a wide variety of interests along with a shared goal of remaining active and offsetting the aging process, says the report.
As more older adults seek to continue their active lifestyles, whether by exercising for improved health or engaging in social activities just for fun, industries from online dating to motorcycle manufacturing could see a spike in older adult participation.
Written by Alyssa Gerace