PMD Resumes Operations as an Independent Provider of Data, Research and Analysis for Senior Living/Care Sectors
Effective March 1, 2013, Michael Starke resumes ownership of PMD Advisory Services, the company he founded and has been involved in for 30 years.
Observations on Our Consumer
In the last four years I have moderated over 125 focus groups with more than 1,500 senior participants in 30 different markets across the U.S. I’m pleased to tell that consumer interest in the types of senior living communities that we develop and manage is increasing again.
It has been a very difficult period for them. Over the last six years they have watched as their homes have been devalued and their net worth diminished. They have been through an incredible journey dealing with the grief of those losses.
My experience over the last six to nine months indicates to me that they are coming to terms with their new reality and are ready to move forward with expectations based on the economy of 2013. Here are some key things that I’ve heard that give me hope about this year and beyond.
· The economy – “The economy is already getting better. It’s just going to take a long time and it will never be back to where it was.” They base their assessment of how the economy is doing primarily on the change in the unemployment rate and the movement in the Dow Jones Index. As long as unemployment is improving and the Dow is OK – they are more bullish.
· Home value – “My home will never be worth what it was in 2006 … but then it was probably overpriced back then.” That is not the kind of statement I was hearing back in 2008-2009 when home values were tanking. Our target consumers have adjusted and the majority is being much more realistic. A recent article in the Wall Street Journal (Weekend Investor – 2/23/2013) indicated that in some markets median sale prices are up over last year while listings and days on the market are down.
· Lifestyle – “I want to live the same lifestyle when I move to a retirement community that I enjoy today. I want to see my friends. Go to the same restaurants. Participate in my church and keep my same doctors.” Several years ago the target market defined lifestyle more in terms of luxury living – “A cruise ship that never leaves the dock!” Things have changed.
· Healthcare – “I’m concerned about who is going to take care of me when I can’t take care of myself any longer.” The healthcare component of the CCRC was hidden in the old days. They didn’t want to hear about it or see it. Today, they still might not want to see it but they do want to know it’s there and they are concerned about cost and quality. The current confusion over the national health care legislation is causing even more concern for our target market.
Assuming that our economy continues to improve (even at a slow rate) I think we are looking forward to a very good year in 2013 for new move-ins and sales. Let’s hope our elected officials can get together and solve the national budget impasse so our target market can focus on the good things happening around them.
I’d really like to hear your thoughts on this subject or reactions to my observations. Please feel free to contact me at michael.starke@pmdas.com.
Owner, PMD Advisory Services, LLC
