Defining Catered Living
Keeping a watchful eye on market trends is one reason why it pays to consult the experts, and we at Maxfield Research have taken notice of a new development trend that is gaining momentum among senior housing developers as well as more aptly meeting the needs of residents at senior housing communities.
Catered living—what is it?
Essentially, catered living is a situation where a unit is utilized as either independent or assisted living housing based on the needs of each resident. A senior in an independent living situation may initially move into a unit but may choose to contract for additional services over time, which changes the utilization from independent to assisted living as the senior ages in place. Seniors have embraced the concept since they are able to capture cost efficiencies by only contracting for the services they need, are able to stay not only in the same community but also in the same unit as their service needs change, and couples are able to continue to reside together even if they have different service needs.
And senior housing developers and service providers know that happy residents are good for all involved, so you can image that many senior housing developers have found the concept to be a profitable one. In addition to increased resident satisfaction, senior housing developers have found that the concept facilitates greater adaptability to changes in market dynamics, which in turn positions the development for higher occupancy, lower turnover, and stronger market performance long-term.
Maxfield Research notes that in our home state (Minnesota), assisted living is licensed as a service and not a place, which makes the catered living option feasible. In other states where assisted living is licensed as a place (or unit) this concept may need to be reconfigured slightly in order to be feasible. Check with your state licensing board for more information.
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