CREJ

Page 26 — Health Care & Senior Housing Quarterly — July 2021 www.crej.com INSIDE I f the past year has shown us anything, it’s that the senior living market is incredibly resil- ient. The ability to adapt must continue in order to reach the vast number of older adults who need the benefit of senior housing but currently can’t afford it. With the 65-and-older population growing by over a third during the past decade, driven by aging baby boomers, there is an impending gap between the current supply and the imminent demand. The financial future of the boomer generation is complicated. They will have far less money in their elder years than previous genera- tions. According to a survey by the National Endowment for Financial Education, 59% of boomers still are financially supporting their children ages 18-39 and a report fromVan- guard shows that 45% report having no retirement sav- ings. Consequently, the rising demand for senior hous- ing, especially in the middle-income market, lies in options that need to be more attain- able than existing offerings. While design alone can’t address the afford- ability challenges, here are some ideas for reducing the costs of devel- opment, construction and operations for senior living. n Seek strategic locations. Find development sites where land is less expensive, usually in suburbs and third-tier cities. Cost of living expenses, labor, medical care and construction also are less expensive in these locations. Place new senior communities near desirable ameni- ties such as grocers, fitness centers, restaurants, medical centers, enter- tainment, public transportation and walking trails. Capitalizing on exist- ing amenities can reduce the amount of infrastructure that needs to be constructed and operated, allowing for lower monthly costs. n Develop differently. Construct buildings with a reduced footprint on smaller pieces of land and pass those cost savings to the residents. There are many more opportunities to find 2- to 3-acre sites versus sites that are 8 to 10 acres. Baby boomers are seek- ing a deeper sense of community and don’t want to live in the large, insti- tutional settings that their parents did. Smaller community sizes create a better sense of cohesion, connec- tion and meaning. n Design neighborhoods. Lay out senior living communities with clus- ters of 12 to 24 resident units. This can help foster a better sense of com- munity and reduce operation costs. It’s a departure from the program- ming typically found in large senior living buildings, where shared ameni- ty spaces are used by everyone and it can become more difficult to connect with neighbors. Right-sizing some multiuse, amenity spaces for smaller groups and conveniently situating them at the heart of each neighbor- hood allows residents to easily come Beyond the forgotten middle: Embracing plans to make senior housing more affordable It’s important to listen to people working in senior facilities when designing for the future Market outlook Design trends PAGE 28 PAGE 29 Len Segel Director of senior living architecture, Kephart A look at the senior housing market fundamentals in Denver since the pandemic Occupancy rates PAGE 27 Reinvent senior living for attainability July 2021 Please see Page 30 Kephart Kappa Tower II was designed with simple forms and cost-effective exterior materials to help keep costs down for residents. More expensive materials, like masonry, were used sparingly and in high-impact locations.