Category: sales

Doug Chasick – also known as “That Fair Housing Guy” – has nearly 50 years of experience at all levels of investment real estate acquisition, management and leasing. He was also a recent Roundtable guest, where he shared some wisdom about the ins and outs of fair housing and the impact that recent laws may have in some states and nationwide. 

It’s worth noting that using diversity in your community’s marketing images is a step in the right direction when it comes to adhering to fair housing regulations.Here are a few key takeaways from Doug’s Roundtable presentation:

DISPARATE IMPACT IS REAL (AND A PROBLEM)

Disparate impact refers to policies that are neutral on their face but result in discrimination against a protected group when enforced. Doug cited a recent HUD settlement with SafeRent Solutions, which was based on race discrimination through disparate impact rather than intentional discriminatory treatment.

DIGITAL DISCRIMINATION IS ALSO REAL

Digital discrimination arises when luxury communities are provided with high-speed internet while affordable communities are left with slower options like DSL. Given the demographics, this disparity can lead to allegations of discrimination against protected categories in the affordable properties. This issue is particularly challenging because new constructions are easier to equip with advanced digital features, whereas retrofitting older affordable properties is costly and complicated.

PET BANS COULD BECOME A THING OF THE PAST

If passed, a pending California bill would require multifamily properties to allow common household pets. This means that communities currently operating as no-pet communities would need to permit pets such as dogs, cats, reptiles, small gerbils, hamsters, and even snakes. This serves as a heads-up for those managing properties in California. 

NON-COMPLIANCE HAS SERIOUS CONSEQUENCES

Doug ended his presentation by highlighting a significant case involving three real estate companies in Washington, D.C., which collectively faced fines totaling ten million dollars. The fines were imposed because the companies refused to accept tenants who had Housing Choice vouchers, a violation of fair housing laws. As a result, the president of one company had to surrender her broker’s license, and all principals involved were barred from working in the real estate industry. This case underscored the serious consequences of non-compliance with fair housing regulations. 

Varsity’s Roundtable is a weekly virtual gathering of senior living marketers and leaders from across the nation. For updates about future weekly Roundtable gatherings, email Derek Dunham at .

Varsity has been selected as the agency of record for Wichita, Kansas-based senior living community, Larksfield Place. The competitive win followed an RFP process that involved several other marketing firms. 

The multi-year project involves branding research, sales consulting, development of a creative campaign and marketing for Larksfield Place and an upcoming expansion of the community. 

“We’re expanding, both as a community and a brand. Marketing that expansion is important but we don’t want to lose focus on the marketing of our existing community,” said Larksfield Place vice president of sales, Tammy Flaming of the decision to partner with an agency. “Varsity allows us to stay focused on both and develop new lead generation strategies for the new expansion.” 

Specific tactics will include direct mail, paid digital media, social media, print and out-of-home advertising and various collateral materials. 

“Larksfield Place is a leader not just in the Wichita market, but nationally as evidenced by their recent ranking as one of the best CCRCs in America according to Newsweek,” said Varsity President Derek Dunham. “We are honored to partner with the team to advance Larksfield Place’s mission.” 

The goals for Varsity and Larksfield Place will be to generate qualified leads for the expansion while maintaining or exceeding 90% occupancy in the existing community. Initial strategy is focused on awareness of the expansion and priority members for the expansion. Work will run in the Wichita and McPherson, Kansas areas.

For more information about Larksfield Place visit Larksfield.org.

Scott Townsley from Trilogy Consulting knows a thing or two about critical thinking and he shared that knowledge with us recently as a Roundtable guest. In that appearance, Scott talked about how to look deeper and ask probing questions to uncover valuable and actionable insights in a presentation titled “Hero or Heretic: The Role of Critical Thinking in Marketing and Sales.” 

Here are a few key takeaways from that conversation: 

THE HERO AND THE HERETIC

Critical thinkers ask probing questions, which can either make them heroes for uncovering important truths, or heretics for challenging group assumptions. Scott described critical thinking as the practice of asking important questions that others might be too hesitant to pose. This can lead to becoming a hero for addressing crucial issues. However, it also poses the risk of becoming a heretic, as critical thinkers may uncover answers that challenge the prevailing views of the group.

LOOKING BEYOND OCCUPANCY RATES

Scott emphasized the critical importance of understanding and utilizing data beyond occupancy rates for marketing and sales in organizations. He suggested that while occupancy is frequently discussed, other valuable data often goes underutilized. By questioning and analyzing this information, and sharing insights with others, organizations can move beyond short-term fixes and take significant steps to enhance the nonprofit senior living sector. 

DATA REVEALS ACTIONABLE INSIGHTS

Scott delved into actionable metrics and critical thinking regarding occupancy issues. He highlighted that simply attributing declining occupancy to performance overlooks deeper factors. By examining data, we learned that in one particular CCRC, vacancy rates are highest in smaller units and lowest in larger ones, a correlation often missed at the board level. This insight leads to the actionable conclusion that converting small units into larger ones is essential to address occupancy challenges effectively.

CRITICAL THINKING FOR THE WIN

Critical thinking is the act of questioning assumptions and anticipating potential challenges to current advantages. Scott emphasized the discomfort inherent in challenging the status quo due to our natural confirmation bias. He advocated for seeking disconfirmation, acknowledging that what was once believed to be true may not hold under scrutiny. Actively seeking data is important and so is asking probing questions to uncover critical insights that can drive improvement in Life Plan Communities or senior living organizations. 

Varsity’s Roundtable is a weekly virtual gathering of senior living marketers and leaders from across the nation. For updates about future weekly Roundtable gatherings, email Derek Dunham at .

Yesterday, we celebrated our 200th Varsity Sales & Marketing Roundtable. Over 50 attendees tuned in to hear special guest John Spooner, co-chief executive officer of Greystone Communities, share his presentation, “Understanding the New Consumer Mindset.” Here are some highlights of John’s fascinating discussion.

More Than a Retirement Counselor

You may be called a retirement counselor or marketing assistant, but you have to think of yourself as the chief revenue officer. The organization won’t thrive unless you have success bringing new residents into the community.

The Three Buckets of Prospects

How many clients do you have that are sold on your community, but still won’t move forward? We put prospects into three buckets:

• Planners: They know what they want and they move through the process relatively fast.
• Procrastinators: A giant bloat in your database: They’re sold but they’re just not moving forward.
• Crashers: They wait too late, and come in after they’ve had a health scare. Now they need AL, but they really want IL.

‘I Understand and Want the Benefits of Your Community, BUT …’

The procrastinators say things like, “I couldn’t leave my home.” “Let’s talk next year.” “I’m not ready.” “I need to think about this.”

We call those F.U.D. (fear, uncertainty and doubt). Those are people that we have trouble moving through the process. Their objections are not unique. Sometimes it’s an emotional objection, sometimes it’s a financial objection. They toggle back and forth and switch to another one after you’ve got them covered. So the question is, at what point do we lose them? When the reality sets in that they have to make a decision.

Selling Senior Living Is Hard, Buying Is Harder

Selling is a difficult job. But buying is harder because prospects are coming into it without a lot of knowledge, trying to make a decision that most of them don’t want to make. That’s why you have so many people in your bloated database.

Prospects Have Created a Living Terrarium — and They Want to Stay There

We’re genetically engineered to conserve energy by minimizing energy expenditure. It’s easy to say, “I can’t move because I can’t change my doctor, my plumber, my friends.” Prospects have created this living terrarium that they are living in — they are not going to expose themselves to self-imposed chaos. They say, “I’m going to hit the easy button and live in my ecosystem.” Ecosystem equals status quo.

Battling ‘Status Quo’ Bias

Everything that prospects think or say is about seeking information that confirms their decision to do nothing and maintain the status quo. They are so fearful of making a mistake for an uncertain outcome that they can’t move forward. Simply put, their fear of messing up is more than their fear of missing out. Our job is to break the gravitational pull of that senior status quo. When you can move their status quo so that it becomes less than the community, everyone wins.

Your competition isn’t another community across town. Your competition isn’t “staying in their own home.” The REAL competition is NO DECISION. Some seniors are playing the same “no-decision” game with every community in town. They live in a constant state of indecision. You need to know how to recognize it and overcome it. They are thinking, “What if your community isn’t what I want?” Your job is to give them confidence that they’re going to go in there and be OK.

Prospects do not want to talk about you or your community. They want to talk to you about them. When you go to the doctor, you don’t want to watch a video of their latest operation, you want them to talk to you about your problem. The same goes for senior living. Don’t give a long description of the community … the choice of three entrees … the meal points program … the beautiful apartments — prospects want to talk to you about them.

Going Beyond Discovery 101 to ‘Radical Candor’

There are standard discovery questions that we all use. But it really needs to be about breaking the status quo. It’s about the art of personal engagement and addressing uncomfortable topics to give prospects personal insight. You have to learn to attack their outcome uncertainty and reframe questions to get them to understand why they have to break the status quo.

That requires radical candor. You have to challenge them by asking uncomfortable questions, like:

• Does the next five years of your life look like the last five years?
• That house isn’t working for you anymore, is it?

It might be unpleasant and it might be scary for you to be this forward, but it’s OK. The first two to three questions are difficult, but you will be surprised at the great outcomes. Don’t talk to prospects about all the contract options — talk to them about how they can break out of their little terrarium. Radical candor is about caring personally and challenging directly.

Your job is to ask and then to reframe the probing question into a statement that assures them they have the confidence to make this decision. Challenge their positions and biases, and then stand up and make a recommendation to them. You are the subject matter expert. You are the one they have turned to to help them spend the last years of their life. From your discovery, you know what is important to prospects. You can start with “This plan is a popular option” or “I personally prefer this option.” It shows that you have diagnosed their needs and have a personal recommendation. 

Indecision Junkie Recovery Program

To sum up, here are six steps to indecision junkie recovery.  

1. Own the flow of information.
2.   Employ “radical candor.”
3.   Anticipate objections and indecision.
4.   Use your discovery knowledge.
5.   Community  > Risk > Status Quo
6.   Make a personal recommendation.

What Your Community Can Offer Prospects

Security. Predictability. Safety. Dependability. Reliability. Permanence. These qualities represent what your community can offer prospects — the stuff deep down in their emotions that they’re looking for. You just need to wash away the fear by leading them through the mire and muck of “status quo bias” — giving them confidence to make a decision.

 

 

 

With “Live to 100: Secrets of the Blue Zones” coming out recently on Netflix, there is a renewed interest in the research and concept of Blue Zones^®, areas around the world where people live much longer than average, with the highest rates of living centenarians.

In 2004, author Dan Buettner teamed up with National Geographic and the world’s best longevity researchers to identify pockets around the world where people live measurably longer and better lives, and to see what commonalities there might be in their behaviors, practices and lifestyles that might result in this longer lifespan. They discovered five locations where people reach age 100 at a rate 10 times greater than the average in the United States: Okinawa, Japan; Sardinia, Italy; Ikaria, Greece; Nicoya, Costa Rica; and Loma Linda, California. When pinpointing these locations on a world map, Dan circled them in blue, and therefore called them Blue Zones^®.

Researchers found that the lifestyles of all Blue Zones’ residents shared nine commonalities, which they called the Blue Zones Power 9^®: Lifestyle Habits of the World’s Healthiest, Longest-Lived People. These behaviors are grouped into categories: Move Naturally, Right Outlook, Eat Wisely and Connect.

Those of us in the senior living space would love for our residents to live longer, healthier, happier lives, so the question is, “Can we replicate this philosophy and these practices in our communities?” We already offer healthy meal options, fitness and exercise opportunities, and a sense of belonging, but how do we get residents to buy into it?

Some Varsity clients have modeled their wellness programs after the Blue Zones practices. We’ve hosted marketing events to educate people on the Blue Zones philosophy and its importance related to longevity, and then four smaller events dedicated to Moving Naturally (yoga, stretching), Right Outlook (meditation, mindfulness), Eating Wisely (Chef cooking demonstration with Mediterranean diet with wine pairing) and Connection (practicing good communication skills and technology). Some communities even code the events on their activities calendars with icons representing the Blue Zones practices.

While both residents and prospects enjoy the events and agree with the concepts in theory, it’s a pretty heavy lift to get people to adhere to a lifestyle that may be foreign to them. It’s a huge culture shift that may be difficult for some to achieve. Case in point, I recall one resident that I joined for breakfast who told me that her doctor recommended she eat more fruits and vegetables, so she ordered a cherry Danish instead of her usual cheese Danish. True story.

While we would like our residents to “live better, longer,” all we can do is offer the options to do so. The choice is obviously theirs to make, and perhaps having that autonomy is more important.

 

 

Guest post by Natalie Clark, Community Manager; and Kaitlyn Mulligan, Social Media Strategist; Pavone Group

Hardly a day goes by without hearing buzz about “AI.” Generative AI is a type of artificial intelligence technology that can produce content, such as text, images and other media, in response to prompts. And this year, we’ve seen a huge wave of AI tools entering into the social media space. 

Snapchat was the first on the scene to add AI features. Since Snapchat is well known for its focus on privacy, people were a bit nervous when it introduced its AI bot. Essentially, the AI added commentary about things people were “snapping” and messaging about. Thankfully, Snapchat listened to its community and “My AI” is now solely for those who have a paid Snapchat membership. 

As for Meta, the parent company of Facebook, Instagram, Threads and WhatsApp, it is being a bit more cautious about developing AI tools. Currently, Meta is developing an AI tool that would enable you to ask questions of an AI system within any direct message. This is something that may be more useful for senior living brands in responding to clients or prospects, helping you to write better answers. 

TikTok is also looking to latch onto the AI hype with an AI chatbot, which it’s calling Tako. Different from what Snapchat and Instagram are doing, Tako can be used to find relevant TikTok content that matches your preferences or to track down videos you’ve seen before. Generally, it makes users’ lives easier. Speaking of which, AI-generated content on TikTok must now be disclosed with either a sticker or a disclaimer indicating the content has been created by AI, similar to an “ad” hashtag you’d see on Instagram.

In general, as AI starts to help users search for social content, keywords are becoming even more important for social posts. For your brand, make sure to use keywords in captions and copy, so that those using AI tools will be directed to your profile with their queries. 

While senior living prospects may be slower to adopt social media, we should always keep in mind that we also want to reach their adult children, and even the younger generation, for hiring talent. So we need to stay on top of these AI trends to connect with all these audiences.

Guest post by Mary Muñoz, Senior Managing Director, Ziegler

This is certainly an interesting time for senior living — we’re moving away from COVID-19, although we’re not quite past it yet. The pandemic has taught us a lot about where we’re headed in the future, but there are also a lot of industry trends that have remained constant through it all. Let’s take a look at what’s trending in senior living right now.

Industrywide Growth and Consolidation

What hasn’t changed with COVID-19 is the population wave we have coming, with a surge in the 75- to 85-plus cohort. And with that, we still have many drivers that make our business an attractive one. For starters, there are those still living at home who don’t have anybody there to take care of them during the day. We have the dangers of social isolation among older adults. And there are those who can’t afford caregiving.

In addition, we’re seeing a consolidation trend across the industry. Why is this happening? Almost every transaction we’ve seen has involved a CEO retirement. We’re facing a labor shortage in care and dining, along with a shortage on the C-suite side, as fewer people are coming into the senior living business, although larger organizations have some advantages in recruitment and career path offerings.

Ongoing Labor Market Challenges

Speaking of which, let’s talk about the labor market a bit. The U.S. Bureau of Labor Statistics is projecting almost 1.2 million annual job openings in senior living. Worldwide, we’ve already crossed the line in the past couple of years that there are fewer people under 5 than there are those 65 and older.* That means we literally won’t have the bodies to do things the way we’ve done in the past. So, we have to find ways to reinvent how work is getting done in our communities.

The pressures are coming from many different directions. We’ve got financial struggles, and the changing demographics of who’s coming into the workforce. Government reimbursement is under pressure, which in turn affects health care worker wages. The pandemic caused clients to lose employees because they refused to be vaccinated or simply burned out. Immigration was disrupted and a lot of the caregivers we get from across the border were affected. And then we have the lasting issue that senior services isn’t exactly a sexy line of work.

Stressors in Skilled Nursing

For post-acute care, I want to highlight the compounding challenges in the skilled nursing environment. COVID-19 definitely exhausted and burned out employees. There’s also the need for private rooms, which many communities did not offer pre-COVID. And a lot of the nursing communities are old, with declining occupancy, in part because we didn’t have assisted living and memory care until recent years. So, there were some people who didn’t need to be there and could be taken care of in a less acute setting.

All of these factors are leading to a downsizing of skilled nursing, and in some cases the transition of skilled nursing rooms to high-acuity assisted living. In fact, we’ve counted 35 Life Plan Communities around the country that have eliminated skilled nursing from their continuums in favor of high-acuity assisted living.** And there are many new communities being built right now that have no skilled nursing.

Technology as a Partner for Smarter Aging

There are many developing technologies that serve seniors in various ways. We’ve certainly had a dramatic rise in telehealth during the pandemic. Beyond that and electronic medical records — which most already have in place — there are resident engagement technologies, including dining reservations, menus and activities. There’s also been a focus on predictive technology, not only tracking footsteps but also predicting falls by tracking gait. That’s in addition to cognitive brain solutions, smart home technology and even robots. While robots probably won’t cure the labor shortage, we have seen communities using robots to deliver plated meals and bus plates in dining venues, for example.

These four takeaways are just the beginning of what’s trending as we emerge from the pandemic. For more information, feel free to subscribe to the Ziegler e-newsletter, refer to our white paper about health care technology or message me at .

*Source: U.S. Census Bureau, Percentage of World Population Under Age 5 and Aged 65 and Over: 1950-2050

**Source: Ziegler Investment Banking

Solo agers. Kinless seniors. Elder orphans. These buzzwords have entered the common vernacular, but they’re also describing a very real shift in demographics. The current generation of seniors contains more solo agers than ever before.

“Solo agers” are defined as those over age 50 who live alone, are not married or partnered in a long-term relationship, and have no living children. They make up 12% of the ages 50+ population in the United States, and this trend is increasing, as more baby boomers get divorced and fewer have children, and people live longer overall.

According to a recent report by Forbes, among adults 75 years and older (not boomers), 10.9% reported being childless; among those ages 65–74 (early boomers), 15.9% reported being childless; and among those ages 55–64 (late boomers), 19.6% reported being childless.

Right now, there are close to a million solo agers in the U.S., and as Generation X and Millennials head to retirement, that number could grow even larger. These generations are getting married even less frequently than boomers.

What does the trend toward more seniors without family ties mean for retirement communities? We hear a lot about “demanding boomers” and the high-end amenities they expect — but another audience to consider is diverse populations like these.

According to an article in InsideHook, kinless seniors often live alone and rely on appointments with doctors or encounters with cashiers to interact with other people.

What’s more, a Canadian study reported in the New York Times that those without partners or children had lower levels of self-reported mental and physical health, and higher levels of loneliness, which in itself has been linked to many health conditions. Even more worrisome, a decade after respondents’ initial interviews, more than 80% of seniors with partners and children had survived, compared with only about 60% of those without either.

In contrast, studies have shown that residents of Life Plan Communities tend to live longer than other people. So what better environment for solo agers than senior communities, where they can form meaningful friendships and live happier, healthier, longer lives?

Here are a few suggestions on ways to connect with kinless seniors — and to help them get the most out of your community once they join it.

1. The sales process

Typically, the salesperson must consider the influence of adult children on the sales process. But there are a growing number of prospects who will be trying to make these decisions on their own, and who will be looking for input and advice.

2. Online resources

Why not show that you understand this growing audience and their concerns by including solo ager-focused blogs and resources on your website?

3. Prospect events

Events can address issues that solo agers are coming to terms with, such as decision-making on one’s own, medical power of attorney, financial planning and loneliness.

4. Marketing materials

While married couples will always be depicted in brochures and ads, it’s also important to think about the diverse populations we’re serving and make sure they’re represented in marketing pieces.

5. Campus events

Since connecting with others is so important for kinless seniors, inclusive activities, events and clubs can help them feel a part of campus life. Shared meals with “friendship tables” open to all are also a great way to make solo agers feel welcome.

6. Celebrations

Holidays like Mother’s Day, when the mailroom is filled to bursting with bouquets and cards from children around the country, can be a time to also acknowledge those who don’t have children.

7. Support groups

Campus support groups that address the needs of solo agers can help them find a niche in your community.

Senior communities have always had a focus on supporting solo residents, but with the trend toward more divorces and lower marriage rates, combined with longer lifespans, this group will only continue to grow. In a society that doesn’t provide well for those without family ties, communities can be a powerful solution to help them thrive during their later years.

Google Analytics GA4 will be the only way to track website activity after July 1.

Don’t worry, we have the details you need and options to make your old data useable.

By now you’ve probably seen this banner or heard that if you use Google Analytics you need to migrate to GA4. If you haven’t, get in touch with your agency of record to make the move to GA4 today!

Answers to Frequently Asked Questions About GA4

Q. Who is affected?
A. Any property (website, software, app) using Google Analytics’ Universal Analytics (UA).

Q. Why do I need to be concerned?
A. GA3, more commonly known as Universal Analytics, is going away. Three things will occur when that happens:

1. UA data will stop collecting on July 1, 2023.
2. You will lose UA data. (No specific date has been given, other than October 14, 2023.)
3. If you haven’t already set up GA4, you will need to do so in order to continue to track and measure website activity

Q. Why is Google doing this?
A. Google is moving toward Google Analytics 4 (GA4), the next-generation measurement solution, because it takes a privacy-first approach to follow people the way they use technology today.

Privacy was just a glimmer in the eyes of web visitors when UA was released over a decade ago. Now more protections are expected and included. For example, GA4 tracks first-party cookies — meaning cookies placed by a website’s owner, not someone other than that site’s owner — thereby protecting visitors from invasive third-party cookies, which pose a security risk.

When Universal Analytics was created, we primarily explored sites using just one device (usually a desktop or laptop). Consumers are now more likely to start a website journey on their smartphone while watching TV, then move to a bed cuddled up with their tablet, and conclude their journey the next day on their laptop. GA4 is built to capture this entire cross-device consumer journey, giving marketers a complete and insightful picture of their online habits.

Q. What happens to my old UA data?
A. Google will only store your UA data for a period of time (not yet disclosed by Google at the time this article was published) and then poof, it is gone. To retain historical data, Google recommends that you export it. Can you imagine looking through spreadsheets to glean insights? Even in a pivot table would be a fast “no” from many people.

Many people started to record GA4 data by July 1, 2022, to have access to year-over-year data on the GA4 dashboard. However, if you didn’t — or if you want data that precedes GA4 (before October 14, 2020) — we have a solution for you.

Data expert/dashboard options

Before you start worrying about your data going to the spirit in the sky, relax — we have you covered. Varsity has partnered with our sister company, WildFig, which offers three GA4 solutions to fit your marketing needs and budget. Our plans capture data from the beginning of your Google Analytics history until the current day of export. Two options include an easy-to-use dashboard that displays standard metrics.

Standard metrics included (old GA terminology)

• Users
• New users
• Sessions
• New sessions %
• Average session duration
• Pageviews
• Pageviews per session
• Bounce rate
• Goal completions (if applicable)

Additional metrics may be added to the dashboard for a one-time fee.

Filtering options

• Date range
• Data will be aggregated to a monthly granularity
• Medium (Organic, PPC, Direct, etc.

Data export/dashboard cost

$500         Straight export of historical UA data

$2,920     Export and historical UA data dashboard + $50/month for dashboard storage/server costs

$8,750     Export and historical UA and live GA4 data in one dashboard + $50/month for dashboard storage/server costs

If you would like to see a demo or learn more, contact .

If you have not yet migrated to GA4, the train is leaving the station soon. Make sure that you make the move before July 1 in order to keep from losing your organization’s valuable data, and continue to be able to track and measure activity from your website visitors.

Resource: https://support.google.com/analytics/answer/11583528?hl=en&sjid=2711946442297389965-NA

I’m Stuart Jackson. executive vice president at Greystone. We are a development and operations consultant in all areas of senior living. We work with Life Plan Communities in over 40 states, and have consulted with well over 500 providers in our corporate history. We are often asked to come in and bring strategic thinking to help organizations grow, adapt and change.

Recently, Brad Straub, executive vice president at Greystone, and I presented “A Bird’s Eye View in Growth and Redevelopment” at the Greystone Sales Adventure event in Dallas. In this post, I’ll touch on some of the highlights, including trends within the space and how your peers are adapting their businesses to them.

An Overview of Our Current Environment

Our current environment has a lot of pressures and uncertainties. Inflation has had its impact. Labor has been difficult to come by. Interest rates are rising. Hopefully, we’re past COVID-19 to a degree, but that’s been painful and tough. Yet there are positive indicators, too, like demographic growth, economic improvement and a healthy real estate market  (depending on where you are). Cost of capital has historically been a positive indicator. Rates are rising, but availability is still relatively strong.

Demographics Remain Strong

I want to emphasize the positive indicators that make us excited for the future of senior living. There will be continued, sustained growth of the senior population over the next 20 years. The roughly 25 million 75+ year-olds in the U.S. will grow to roughly 45 million, remaining strong. By the mid-2020s, twice as many people will celebrate their 65th birthday than in the 1980s and ‘90s.

Households Age 75+ by Income

All of that is great, but you might ask, “Will this generation have the economic means to move into a retirement community in the future?” We looked at projections from 2016 as to how many households would meet income thresholds in 2021. When we compared them to the actual 2021 data, the number of seniors meeting those thresholds were actually 30% to 40% greater than projected. That tells us that when looking to the future, seniors will have more income and assets than they had before.

US Home Values Up 110% Since 2002

In some locations we’ve seen a decline in home prices. But we have to take a broader view. Seniors who have owned their homes for a long time have experienced significant run-ups in price. The value of homes post-COVID-19 has skyrocketed. That’s a positive indicator for entrance-fee-based communities, as seniors will have even more assets than anticipated.

Favorable Mortgage Rates

The bond market expects mortgage rates will average 5.6% in 2023. If you look at rates, they’ve risen sharply over the last nine months, but they are still at all-time lows. They’re projected to normalize in the 5% range. That’s great for a buyer looking to buy a senior’s home when they sell it.

Current Market Conditions

Sales and pricing conditions are slow or very slow in 64% of markets, down from 81% last month. 36% of markets are normal, which reflects 2–3-month sales per community with rising net prices. Homes are selling in around 60 days, which is pretty normal for this last decade.

What’s on Providers’ Minds Today?

Let’s shift to the current landscape and touch on the mindset of the customer. Even if people have a high-value home, that doesn’t necessarily mean they’re confident in selling their house and moving into senior living. They may be hearing about the economy and putting a pause on the decision-making process. So how do communities address planning for the future?

We’re seeing a range of methods to position communities for the future, including expansions of current campuses, new locations, satellite locations, acquisitions and affiliations. Let’s focus on a few.

Expansions

Expansions are a great way to incrementally innovate your campus, to better position yourself with current residents, and better serve future Boomer residents who may look to your community for aging well. We believe you should create projects in small phases that are both market- and financially supportable, in order for expansions to support themselves and generate benefits for your organization.

Independent living is the main focus. Creating larger accommodations has absolutely been a trend, because Boomers have more resources and are willing to pay for, or wait for, bigger accommodations. If you have one-bedrooms or studios, you may find those challenging to fill. If you have assisted living and/or memory care on campus, our view is to right-size those types of residences to benefit mostly your internal population, and have them fill those levels of living. Choice for the consumer is key. There is lots of focus on dining and amenity spaces, and how existing spaces can benefit new prospects. We’ve talked about pickleball more in the last six months than I think we ever have! That’s what we’re seeing a lot of, combined with great social spaces.

Canterbury Court is an example of a recent Greystone expansion. This Buckhead Atlanta community has a replacement healthcare building going in next to their existing towers. We’ve been helping them adjust by reducing their healthcare and adding more independent living.

Satellite Campuses

Another trend we’re seeing is the satellite campus. If you’re landlocked and have a difficult time adding more land to your campus, but you need more independent living to improve your offerings, the way to do so is with a satellite location. At Friendsview in Portland, we created an expansion of an existing satellite cottage community, about one-and-a-half miles from the main campus. This satellite community is also adjacent to the nearby college campus for lifelong learning opportunities. It’s already sold out and filled up.

Strategic Pricing

Another area we spend a lot of time digging into is strategic pricing analysis to really evaluate your market.

Nationally, the number of age-and-income-qualified seniors in the market has jumped 20% in the last two years. Your market can afford more. There is value in adjusting your entrance fees and monthly fees, and you can analyze your current pricing and compare it to the pricing of your competitors. Once you have that knowledge of your market, you can determine how to change your pricing and contract structures, and look at your healthcare benefit and refund options. This analysis can help your businesses with inflation and rising costs that are putting pressure on your operating margin.

One thing to do in any pricing analysis is prepare a penetration analysis. We actually test every unit, style and price point across monthly and entrance fees, to understand the market’s ability to afford those specific price points within your mix of units. That penetration rate shows either risk or opportunity in your marketplace.

I hope this analysis of the latest trends in senior living has been helpful to you. Today’s landscape has challenges, but there are many positive indicators that can help your community move forward to a successful future.