Top Senior Housing Trends For 2023

The demand for senior living is growing each year, and care providers are becoming more focused on the next generation of consumers in 2023. However, they are experiencing challenges in adapting their services to meet changing needs. These challenges come from economic uncertainty such as tight labor markets, increasing interest rates, and high inflation. Despite these difficulties, senior living providers have the opportunity in 2023 to differentiate themselves and attract a more diverse resident population.

2023 Trends in Senior Living: Navigating consumer demands amid economic hurdles & tech shifts in a post-COVID landscape.

1. Active 2.0

The concept of rental active adult communities has been steadily growing in recent years, but now it is reaching a new level of maturity from practical experiences and industry-wide data. As a result, a more standardized active adult product is taking shape. One noteworthy aspect of the next phase, known as active adult “2.0,” will be the integration of housing featuring abundant amenities with healthcare services.

The underlying idea is that older adults will initially be drawn to active adult communities and eventually be able to seek the services and assistance necessary to sustain their residency in those communities for as long as possible.

2. 2023 will be the “year of the consumer”

Senior living operates within customer service, where hospitality is often given equal or greater importance than healthcare. However, the industry has struggled to consistently meet the needs of consumers. Despite efforts, the market penetration rates have remained still at around 10%. There is a risk of even lower rates if the baby boomer generation is dissatisfied with the available options or frustrated by the sales process.

When potential consumers visit senior living communities, they have higher expectations regarding the lifestyle they desire. They seek programs and facilities that can help maintain or improve their well-being. While senior living providers are aware of these dynamics, their recent focus has primarily been on dealing with the challenges posed by Covid-19 and maintaining staff. Now, providers must shift their focus intensely toward consumers. This may involve adjusting operations, enhancing building designs, and creating a more personalized and appealing product overall to meet the consumer’s needs.

3. A senior living provider goes private

It’s going to be the year where the arguments against being a publicly traded operator could potentially win, and companies decide to go private. Being a publicly traded senior living company is tough because you have to always keep shareholders in the loop. Dealing with short-term challenges while also focusing on long-term growth can be a real headache when you have to report your progress every quarter. People are starting to realize the advantages of going private. You get to enjoy less scrutiny and have more time to make strategic decisions.

4.‘Amazon effect’ takes a break- for now

Amazon has also had a prominent presence in senior living with the use of Amazon Alexa devices. It’s clear they see the enormous potential in the older adult market. However, like other tech giants, Amazon is facing various challenges and shifts in its healthcare strategy this year. Despite this, it doesn’t seem like Amazon is giving up on senior living communities and residents as a business line. However, 2023 might bring some scaling back in certain areas, including senior living, as Amazon adjusts after the Covid boom.

It’s worth noting that Amazon is not the only tech giant in this space. In 2022, around 152,000 tech employees were laid off, with a significant number of job cuts occurring in November. While bold experiments in healthcare delivery for older adults could take a backseat in 2023, the senior living industry should not mistake this for a lack of interest. Tech companies are well aware of the aging consumer market, and as they consider their future strategies, they may refocus their efforts on disrupting senior housing and healthcare once again.

5. Business intelligence continues to emerge in senior housing

Indications suggest that 2023 may mark a significant shift in the pursuit of business intelligence (BI) in senior living, powered by technology. One trend that can contribute to this objective is the rise in affiliation with tech companies. As various platforms come under shared ownership, they are likely to become more compatible and efficient, providing a clearer path toward actionable business intelligence. Companies at the forefront of positioning senior living within Medicare Advantage and other managed care frameworks, such as Lifespark and Juniper Communities, are actively seeking technology solutions that integrate medical record data with information on residents’ lifestyles and goals. This integration aims to facilitate a more personalized experience for seniors.

6.‘Decisive moment’ will come for hospitals and senior living

In 2022, Dr. Bill Thomas, an innovator in senior housing and care, predicted that the hospital-centric healthcare system was approaching its “twilight era.” This means that hospitals would no longer be the primary site of care. Instead, people’s homes, including senior living communities, would take on a more significant role. The hospital-centric model of healthcare is showing significant flaws, particularly in its inability to provide adequate long-term care for older adults. As the new year begins, there will be a growing momentum for value-based care and a need to address and strengthen the senior housing and care system.

The senior housing industry is expected to have significant developments and transformations in 2023. The aftermath of the Covid-19 pandemic, along with various economic and demographic factors, is shaping the trends that will define the year ahead.

1+1 Cares is a referral agency that works for clients and caregivers. We match caregivers with clients and inform them of your requirements. We work for you so you and your loved one can have a safe, enjoyable caregiving experience.