Senior Living, What’s Your Plan?

Will There Be Enough Senior Housing?

In 2025, the first wave of baby boomers turned eighty years old.  It’s the start of the Silver Tsunami.   The aging population in the United States is rapidly expanding.  The people eighty and better will grow by more than twenty five percent in the next five years, and nearly double by 2035. According to the Census, the growth rate of this demographic will exceed all other age groups.  As a result, demand for senior housing will be more than it is today.  It stands to reason that more senior housing should and will be built.  So, what is really happening, and will there be enough supply to meet the demand?  Let’s dive into what we know today and how it might impact the future.

What We Know Today

People are often confused about senior living options.  Over the last year, Choice Connections has offered numerous in-person and online presentations about senior housing options to provide education.  Our emphasis is on planning.  The more people plan, the more choices and control they will have.

Today, many senior living communities in the Twin Cities metro area have waiting lists for two-bedroom apartments or larger.  In one Minnetonka community the waiting list for larger apartments is more than two years.  Other high demand suburbs like Edina, White Bear Lake, Bloomington and Eden Prairie report the same with waiting lists growing.  Saint Paul,a major city identified a shortage of Senior Housing years ago. An option in Woodbury has a wait list of over six years.

George and Millie lived in their single-family Prior Lake home and in 2022 they started the process of finding a senior living apartment.  They wanted to move to Plymouth to be close to their daughter. They toured many communities from Chaska to Maple Grove.  George and Millie went on two waiting lists in 2023. After two years of waiting, a large two-bedroom and two-bathroom apartment became available.  The reality is that most people do not plan this far in advance.

Rising Costs

In a recent listening session on senior housing development the speaker shared about changes in new construction. The cost of construction materials over the last four years has risen significantly.  This means that it costs more to build new senior living facilities.  Because of the significant increase in construction costs a new community must charge more money for rent than an existing community.  It’s risky to believe that people will pay more for a new apartment when they can get the same for less.  Consumers are more budget conscience.

Another factor in rising costs specific to assisted living is the increase in regulatory oversight.  In 2021, new assisted living licensure went into effect in Minnesota.  Along with this came increased costs for operating facilities. The rising cost of materials along with new building codes has slowed new construction.

The National Investment Center for Senior Housing & Care has stated that the industry needs to develop new supply at a rate that far exceeds previous historical maximums.  In the short term, occupancy rates in senior housing are likely to grow significantly as the industry catches up with the tsunami of demand. WWW.NIC.ORG

Creating Your Plan

What does this mean for seniors that desire or need to move to independent living, assisted living or memory care?  It is important to plan.  Do not wait for a crisis.  The team of local caring advisors at Choice Connections knows the Twin Cities market well.  They know all the options, and they will help you create a personalized plan just for you. Give yourself and your family the gift of peace of mind.  To learn more, visit the Choice Connections website at www.choiceconnectionsmn.com