Seniors have all the money!

As seen on our Twitter page...

The 55+ age group controls more than three-fourths of America's wealth (ICSC).

Senior Living Market Research Calls for High Quality Communities

There are millions of people all over the world who age every year and they choose senior living communities as their retirement option. The demand for high quality senior living communities has also increased over the recent years. (See data here.) This has kept the senior living community developers on their feet as they try to come up with new ideas that meet the expectations of their clients. Retirees always go for this option as it gives them a sense of independence while relieving their children from task of caring for them. This is why the senior living communities need to be developed in such a way that all the needs of the retirees are met.

In most scenarios, majority of the household tasks are taken care of by someone else so as not to pressure the retirees. These tasks include laundry, local transportation, planning cultural and social activities, group meals and also planning for holidays. The main difference between this community and the nursing homes is that retirees living in the community are in good health and can move around without any assistance.

It is the ideal choice especially to the individuals who want to spend their golden years together with their peers. This way they are able to socialize with them as much as possible without any difficulties. They will also be able to have fun and take part in numerous cultural, social and fitness activities. This is why the developers always have to make sure that the environment in which they build the senior living community is favorable for the retirees. This way they can attract more clients to their community making it grow by the day.

The community is always compact meaning that it is easy to maintain. It also has to be private while promoting communal living. This is to allow the citizens to feel a sense of security and belonging to the community. However, developers should make sure that the retirees have both freedom and versatility. It should not be the same as living in a confined nursing home. There should be communal meals that are served in a formal dining atmosphere on a regular basis. The retirees will always look for appetizing meals and a relaxed environment. It should be away from noisy places.

The aging baby boomer population is what has kept the demand for the senior living communities on the rise. This has led to the development of more of these communities all over. The developers responsible for building these communities should ensure that realtors can recommend people to them after they have done comprehensive senior living market research.

Developers should always remember that most of their clients have worked hard for very many years and all they want is the best living arrangements. They always look for this in the senior living communities. Once the developers understand the needs that the retirees have then they should tailor the construction of the community to meet these needs. Apart from the environment being right, the price also has to be right.

Even though the seniors may have the disposable income, they aren't going to waste it on sub-par amenities.

Senior Market Research for Targeting Mature Consumers

Studies on mature consumers suggest that more than 33 percent of the American population will be over 50 years old by 2016. Senior market research further claims that the mature market, aged above 55 years, currently controls 75 percent of the wealth in America, and 70 percent of the US disposable income.

The senior market comprises individuals born in the period around the Great Depression, commonly referred to as the Depression-era Silent Generation - born between 1925 and 1942, and those born after the Second World War, commonly known as the Boomers - born between 1946 and 1964. Members of the senior market do not consider themselves to be representatives of their generation. However, their sensibilities can fall in either demographic with regard to their financial, political, social and cultural attitudes.

The specific generation of Boomers represents close to 44 percent of Americans. A study conducted on their consumer habits revealed that their buying power is quite substantial, contributing to the purchase of 49 percent of total Consumer Packaged Goods - CPG. In fact, the Baby Boomers are the primary consumers in 119 out of the 123 CPG categories. Senior market research also shows that the spending habits of Boomers are rather recession proof, with 63 percent of this group having a minimum of one individual in the household working on a full time basis.

Boomers are also keen to keep up with technology. This is supported by the fact that 40 percent of the wireless service subscribers, and 41 percent of Apple computers buyers are the Boomers. Furthermore, 33 percent of internet and social media users are Boomers, with over 8 million of them spending over 20 hours of every week online.

Part of the time spent online is used for shopping. Studies suggest that most of the disposable income of Boomers is spent over the internet, with the cumulative annual expenditure of individuals aged 50 years and above reaching $7 billion. The internet plays a major role in the consumer decision journey of Boomers, where they compare prices and other features before purchasing pricey items like home furnishings and cars.

Older Boomers aged 56 to 66 years spend the most amount of money online compared to other generations, with a quarterly spending of $367 million. Younger Boomers aged between 46 and 55 years fall in second place with a quarterly expenditure of $318 million, followed by "Generation Y", those aged 23 - 31, with an average spending of $311 million. Generation Z adults, aged 18 - 22 years have a quarterly online expenditure of $118.

Besides getting their information online, Boomers also spend a lot of time watching the TV, at an average of 174 hours a month.

For more info, please check out PMDAS.com today!

Managing Director, Michael Starke speaks at CALA and Washington State Leading Age

Michael Starke, Managing Director, PMD Advisory Services will be speaking Monday morning, June 3, 3013 at the California Assisted Living Association Conference.

PMD Resumes Operations as an Independent Provider of Data, Research and Analysis for Senior Living/Care Sectors

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.

Michael J Starke
Owner, PMD Advisory Services, LLC