A Perspective on Trends
(Your market may be different.)
Through our work with senior living communities across the country, we get to experience a broad spectrum of market situations and consumer reactions. So, when clients ask us to talk about trends (which they do frequently), we can’t help but lead with a disclaimer, such as “Keep in mind, your market may be different.” Still, we do monitor what we believe to be trends, and think some of the following apply to more communities in more markets than not. We invite you to tell us about your own experience, if it aligns with or departs from these trends:
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Residents are becoming older and frailer, more need-driven – both new independent living and assisted living residents. Average age on entrance continues to increase.
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On top of economic concerns keeping seniors in their homes, an increasing array of home-based services are available to extend their ability to age in place.
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Seniors continue to be concerned about the economy’s slow recovery and their real or perceived loss of assets and home value. Along with the age-old reasons to cancel moving plans (we’re not ready being the most common), today’s excuses include: can’t sell my home, won’t try to sell until the market improves, can’t afford to move, will stay home until I need assisted living.
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Traditionally the decision-maker for assisted living, adult children are also more involved with independent living decisions these days. And more often the first to inquire.
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New lead generation has remained robust in many markets. (We believe this is a positive indicator that people are still interested in exploring senior living options.) Closing sales is tougher.
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The length of time to make an independent living buying decision is increasing. More touchpoints are needed, multiple appointments, and strong sales professionals who believe in the value of the CCRC lifestyle and possess remarkable counseling skills.
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Prospective residents are doing more research than ever, comparison shopping and choosing based on price and value. Many expect discounts on entrance fees, monthly fees and moving expenses.
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Wait lists aren’t working like they used to. Many communities we know have discontinued them. Or stopped adding new members. Or pared back the number of wine-and-dine events for wait listers. In the process, they’ve closed some sales and freed up their time and budget for more effective uses.
What do you think? What’s going on in your market?
I’m noticing a new trend with prospective residents postponing a buying decision until they have a contract on their home and a settlement date scheduled. We are currently working with 2 prospects who were definitely interested in moving to our community but refused to reserve an apartment and start our financial and medical approval process until their home sold. Now the pressure is on us to get them approved quickly and have an apartment renovated in a few days! Of course in these tough times we are grateful for the business despite the internal stress it might cause, but we’ll need to modify our procedures to adapt to this new reality. If we don’t have the ability to accommodate the timeline of prospective residents, they may choose another community who can.