KC and the rest of the country are living through boom times for retirement living.
If it seems like new retirement communities are popping up everywhere you turn, you’re not imagining it.
In late 2015, the United States had more than 49,000 units of senior housing in the construction pipeline—an all-time high, according to the National Investment Center for Seniors Housing & Care.
The Kansas City region, too, has experienced a wave of senior construction projects in recent years.
» John Knox Village of Lee’s Summit is in the midst of a three-year, $90 million construction campaign that will add bigger units and new community features.
» McCrite Plaza at Briarcliff, which opened in late 2013 in the Northland, is proceeding with an expansion that will allow it to offer long-term skilled care, memory care and other services.
» The 53-unit Village Cooperative of Shawnee opened last month and offers an array of amenities, including fitness center, gardening area and heated underground parking. The development bills itself as the first senior co-op of its kind in the metro.
» Work is expected to start this summer on the Mission Chateau senior living community. The project will be built on the former site of theMission Valley Middle School in Prairie Village.
“The sector is busy, but it’s going to get a lot busier,” said Sam Shelhorn, vice president of business development at Harmon Construction, a local leader in senior construction.
Demographics are driving the trend. The first Baby Boomers turned 65 in 2011, and the commonly quoted statistic is that another 10,000 Boomers hit retirement age each day.
Here in Kansas City, about 50,000 people turn 65 each year, Shelhorn said.
The boom in senior housing might be arriving a little early. After all, most people don’t move into assisted living as soon as they turn 65. The typical American enters senior housing sometime after the age of 80, so demand may not peak until a decade from now.
“We’re looking forward and assessing what the market is going to be,” Shelhorn said. “The huge bubble is still 10 years away.”
Still, the need for senior housing will increase in the near future. Between now and 2020, the number of 80-plus Americans will increase by 1.7 percent per year, compared to a 0.8 percent rate of growth for the overall population, according to a report from Argentum, an association for the senior living industry.
“I think there’s going to be a growing need,” said Dan Rexroth, president and CEO of John Knox Village. “… We are just really on the front end, in terms of meeting the needs of seniors as they go through the aging process.”
Yoga, Lifelong Learning and More
The senior living business, like just about every industry, was hit hard by the Great Recession. Older Americans saw their retirement portfolios get hammered, and because of the housing crisis, they weren’t in a position to sell their homes and move into senior living.
That started to change toward the end of 2012.
“The last couple of years have been very good for us,” John Knox Village’s Rexroth said.
As part of its $90 million construction effort, the retirement community is building new, larger villas and homes. It’s investing in new amenities like an aquatics center, restaurants and a theater that can also be used for long-distance learning.
The John Knox Village campus follows a “continuing care” or “life plan” model. It offers a range of options for residents: independent living, assisted living, skilled care, rehabilitative services, hospice and more. That way, residents can stay in the community and still have their needs met as their personal situation changes.
When the Topeka-based McCrite Plaza decided to expand to Kansas City’s Briarcliff neighborhood a couple of years ago, the family business made sure that its new assisted and independent living units offered a wide range of services, said Cassidy McCrite, who manages the Briarcliff location.
That includes a computer center, yoga and tai chi classes, sponsored trips to wineries and restaurants and even a concierge who can help residents plan dinners and evenings out with visiting family members. McCrite Plaza also collaborates with the Osher Institute at the University of Kansas to offer lifelong learning programs.
“We view retirement as people have worked hard all their lives and now they deserve to do what they want do,” McCrite said.
By adding long-term skilled care and memory care with the new expansion, McCrite said, the Briarcliff location will be able to provide a full continuum of care to residents.
A More Discriminating Clientele
It’s been said before, but bears repeating: Baby Boomers are different from the generations that came before them. When it comes to senior living, they have higher expectations.
“People today really are more discriminating,” said Rexroth, who’s been with John Knox Village since 1990. “They want more choice, and we’re able to offer a lot more options for the lifestyle they would like to choose.”
Many senior communities are designing their buildings so they’re more welcoming to residents’ family members, Shelhorn said. Residents want their grandchildren to visit them.
“Continuum of care” communities are popular, but Shelhorn has also noticed growth in smaller facilities that encourage residents to bring their own furniture for their own rooms and offer some communal space.
While beautiful buildings and enjoyable activities are important, resident care has to take priority, McCrite said.
Case in point: One of his staffers learned that a resident really wanted to visit her old neighborhood in Jefferson City one last time. The employee took it upon herself to arrange a day trip for the resident, who passed away a short time later.
“It meant so much for her to be able to do that,” McCrite said.
Demand Soars for Memory Care
Facilities that specialize in memory care—helping people with Alzheimer’s and other dementias—are one of the fastest-growing segments of the senior care industry.
When you consider the numbers, it’s easy to see why memory care is in such demand.
About one in nine Americans age 65 or older have been diagnosed with Alzheimer’s disease, the Alzheimer’s Association reported. That translates to roughly 5 million people living with the condition.
Because of the nature of Alzheimer’s and other dementias, the demands of caregiving can be exhausting. Last year, 15 million friends, family and volunteers provided more than 18.1 billion hours of care, or about 24 hours per week.
“Typically, we will have people who have stayed at home with a loved one as long as possible, as long as that loved one can physically take care of them,” said Mandy Shoemaker, co-owner of Prairie Elder Care.
The Overland Park business operates two homes devoted to memory care, with a total of 16 beds between them. The second home opened last fall and, within days, was nearly completely booked. “We are working on expanding,” Shoemaker said.
Nationally, investors have been very interested in memory care facilities because they tend to be smaller operations. As a result, it’s easier to secure land and financing, according to a recent report from Integra Realty Resources.
In the most active markets, there is a danger of over-supply of memory care housing. In Houston, Integra found, the number of memory care units more than doubled since 2011, leading to lower occupancy rates.
One of the things that sets apart Prairie Elder Care: Shoemaker’s co-owner (and sister-in-law) Michala Gibson is a registered nurse, making their business one of the few that’s nurse-owned. “We really knew what we were getting into,” Shoemaker said.
That translates to a caregiving approach tailored to people living with dementia. For example, people with Alzheimer’s sometimes react in unpredictable ways, so staffers are trained to invite—as opposed to telling—residents to do things. Other small but useful steps, like letting residents watch as their food is made, can help put them at ease.
“We really specialize in helping people,” Shoemaker said. “We work at giving back community, connection and control.”
Aging-In-Place Projects Help Seniors Stay at Home Long
For a significant number of older Americans, the No. 1 choice for senior housing is the home where they currently live.
According to AARP, about 87 percent of people age 65 and older want to continue living in their own homes. Among those ages 50 to 64, about 71 percent want to age in place.
And that’s created big opportunities for contractors with expertise in aging-in-place or universal design remodeling projects. The commonly quoted number is the market is worth $20 billion to $25 billion.
“The market is still growing,” said Katy Dodd, vice president of business development for LifeWise Renovations.
The Prairie Village company helps homeowners upgrade their houses so they can continue to live independently. Many clients have experienced a sudden change, such as a stroke or a car accident. Others have been diagnosed with a long-term condition, like Parkinson’s.
But some simply want to be ahead of the game. They have proactively planned for aging in place in the same way they would financial planning, Dodd said.
In recent years, LifeWise has started to perform more work through payer organizations throughout the state. Those groups would rather their clients continue living at home if possible, because it’s less expensive than a nursing facility.
And the members usually prefer it, too. “People are happier at home,” said Dodd. “And that’s where they want to be.”
