Commercial Real Estate News / Marketing / The Role of Amenities in Attracting Retiree Residents

The Role of Amenities in Attracting Retiree Residents

Published: 02-29-24 Category: Marketing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Retirees socialize outside senior housing.

Savvy investors in commercial real estate (CRE) consider more than the current market trends. They spend just as much time studying future market needs. One trend that's drawing more investors' interest is the need for housing that caters to the needs of senior residents.

Currently, the number of seniors aged 65 and older is the largest in American history. Our population is the oldest it's ever been. By 2030, all Boomers will be at least 65 years old. The number of 65+ seniors is projected to rise to 82 million by 2050, which is a 47% increase compared to recent (2022) numbers.

While some homeowners plan to “age in place,” many will look for a community that provides a safer, more social atmosphere. This is when adding the best mix of amenities can help deliver a lucrative passive income.

Next, we'll look at the types of retirement communities and over-55 neighborhoods popular with migrating seniors. Later, we'll look at the types of amenities popular with seniors, as adding the right ones will play a major role in your investment's success.

Where Are Retiring Seniors Headed?

While many seniors head to sunny beaches while still in their 60s, other younger Boomers will move near family members. Others will pursue their favorite activities, sports, and hobbies.

These seniors may move to a condominium, neighborhood, or subdivision that stipulates that 80% of residents must be aged 55 or older. These are described as “55+ communities” by the US Department of Housing and Urban Development (HUD).

A typical 55+ community is managed by a homeowners' association (HOA). The community's amenities, which may include a pool, clubhouse, and/or fitness facility, may affect the overall HOA fees.

Two additional destinations for older seniors: assisted living facilities and retirement communities.

These may appear similar at first, but there are key differences.

Assisted Living Facility or Retirement Community?

Generally, a retirement community offers less emphasis on medical assistance than an assisted living facility. Seniors in these communities prefer an active daily lifestyle and will be attracted to properties with many recreational options and amenities.

Assisted living provides daily supportive services such as assistance with medication, visits by in-house nursing staff, bathing, dressing, and transportation. While retirement communities may offer some of these services, many residents won't need them.

Staffing for an assisted living facility will include round-the-clock staff that oversee resident care. Retirement communities will be prepared to transport residents to medical facilities.

No matter which type of property you choose as an investment, those that offer the best amenities to potential residents will deliver a higher ROI.

Here's recent data that tells us which amenities are the most popular with over 55s.

Choose the Right Lifestyle Amenities for Your Residents

Statistics and data have identified which amenities are most popular with seniors shopping for their next home.

Here are the top recreational and lifestyle amenities, according to a 2023 survey:

Swimming pools: these provide the ideal combination of relaxation and exercise.
Game Rooms: Even residents with limited mobility enjoy spending time in these, playing everything from poker to board games to bingo.
Walking Trails and Gardens: Instead of driving to a nearby park, many residents and their visitors appreciate the convenience of well-maintained paths and landscaping.
Fitness Centers: The cliche of seniors spending their days on park benches is dead. Instead, they keep fit by lifting weights, using treadmills and rowers, and attending classes customized to their needs.
Pet-Friendly Surroundings: As our society's love of pets continues to grow, more senior facilities are welcoming new residents and their pets. Others may provide a home for one or more therapy animals.
Beauty and Spa Services: Today's seniors are as concerned with their looks as their younger counterparts. Popular salon services include haircuts, styling, manicures and facials.
Computer Rooms: Going online is popular with seniors, as they can correspond with family members, join groups of like-minded retirees, and locate movies without the need to visit the cinema.

As senior residents age, they often become dependent on their residence's facilities to provide assistance with everyday tasks. These are usually classified as medical amenities.

Medical and Mobility-Based Amenities

Assisted living facilities provide additional amenities, including:

Laundry and Housekeeping Services: Even if residents are able to do their laundry and tidy up their residences, most are more than happy to give up this chore.
Medication Management: Assistance with prescriptions provided by a registered nurse (RN) or certified nursing assistant (CNA).
Transportation Services: Residents appreciate this convenience when traveling to shopping areas, restaurants, and medical appointments.
Physical Therapy: An on-site or visiting physiotherapist is required, as some residents will be suffering from chronic conditions or recovering from falls and other injuries.
Onsite Caregivers: Responsible for providing a caring, safe atmosphere, these staff also assist residents with simple errands such as online shopping.

Maintenance of all medical and non-medical amenities should be included in your overall maintenance and safety protocols. These will depend on the type of over-55 property you're planning.

Maintaining the Safety and Performance of All Amenities

While HOAs manage maintenance for over 55 neighborhoods, retirement communities and assisted living facilities require comprehensive maintenance that emphasizes residents' safety and health. Keep in mind that state health inspections may be carried out.

Specialized maintenance for your investment's amenities is just as important as the living facilities. Your maintenance schedule should include:

Janitors and housekeepers for residents' apartments, common areas, and community spaces. Specialized levels of sanitation are required.
Facilities managers repair lighting and AC units and carry out minor plumbing repairs.
Landscapers to care for lawns and gardens and to ensure that all residents' pathways are accessible and hazard-free.
Pool cleaning and maintenance, which is usually provided by subscription to a visiting pool service.
Electrical technicians to locate and repair more complex electrical issues.

Security personnel should also be trained to address access protocols for residents, staff, and visitors.

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