As demographic shifts continue to provide strong tailwinds for the recovery of senior housing, a new asset class is fast emerging. Baby Boomers transitioning into their senior years have increasingly unique preferences and lifestyles, reshaping expectations for retirement living. The desire for vibrant, engaging spaces that provide enriched living experiences – places where people can learn, socialize, and contribute – presents a significant opportunity to reinvent lifestyle experiences through Active Adult communities.
The Operator's Playbook: Hospitality Meets Community
For operators aiming to seize this opportunity, the strategy must center on people and experience:
- Curate Exceptional Amenities and Programming: Drawing inspiration from the hospitality industry, operators should offer amenities that cater to the interests and lifestyles of active adults. Instead of just fitness centers, consider amenities with distinct and differentiated appeal, like outdoor wellness circuits, rooftop gardens for relaxation and yoga, and tech-integrated fitness classes designed for all fitness levels. For arts, partner with local artists to provide exclusive workshops, and incorporate virtual reality spaces for immersive experiences. Monthly themed events, such as a "Chef’s Table" featuring local chefs or a "Music Under the Stars" series, can enhance resident engagement and create memorable experiences.
- Build a Natural Culture and Sense of Community: Beyond facilities, the essence of a thriving community lies in its culture. Operators need to cultivate environments where residents feel a sense of ownership and actively contribute to community life. Cultivate a community culture by organizing small-group gatherings, like coffee meetups and "interest circles," where residents with similar hobbies can connect regularly. Design spaces like communal kitchens for cooking classes, outdoor fire pits for evening gatherings, and coworking lounges that encourage interaction. Empower a community ambassador program where residents can participate as "neighborhood leaders," hosting events and acting as points of contact for newcomers, fostering a sense of ownership and involvement.
- Lean on Hospitality Expertise: Hiring staff with backgrounds in hospitality can enhance service delivery and resident satisfaction. Their expertise in personalized service and experience management is invaluable in creating communities where residents feel valued and connected. Bring a “concierge” philosophy to lead with service excellence, including event planning, personalized move-in packages, and holiday decorations for residents who wish to celebrate on-site. Offer a resident feedback program where the community can share experiences and shape future amenities, ensuring services evolve based on real needs and desires. Hospitality staff can also organize quarterly “surprise and delight” events to create unforgettable, meaningful moments that build loyalty and a sense of belonging.
A Call to Multifamily Operators
Multifamily operators have a natural pathway into this burgeoning market. However, success requires a thoughtful approach:
- Develop a Clear Strategy: Understanding the unique needs of the active adult cohort is crucial. This isn't just another real estate venture; it’s about creating lifestyle-centric communities.
- Hire the Right Talent: Leadership with experience in senior living and hospitality can navigate the nuances of this sector effectively.
- Commit to Authentic Engagement: Residents are looking for genuine connections and meaningful experiences. Operators must prioritize authentic community engagement over transactional relationships.
Embrace the Future
The active adult segment is more than just a new market—it’s an opportunity to redefine senior living. By focusing on Boomers’ desires for engaging, community-oriented lifestyles, operators and investors can create spaces that are enriching for both residents and themselves.
As capital flows into the sector and innovative operators rise to the challenge, we are poised to witness a transformation in how we perceive and deliver senior living experiences.
For additional information on how we are helping our clients address these and similar opportunities in the senior living sector please contact: