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The retirement communities market size is forecast to increase by USD 394.5 billion at a CAGR of 4.25% between 2023 and 2028. The market's expansion hinges on various factors, including the increasing life expectancy, the maturing baby boomer demographic, and the advantageous offerings provided by these groups. These elements collectively contribute to the market's growth trajectory. With longer life expectancies, there's a heightened demand for products and services catering to older individuals. The aging baby boomer population presents a substantial market segment with specific needs and preferences, driving innovation and tailored solutions. Moreover, the benefits extended by these groups, such as healthcare and retirement plans, further stimulate market growth by fostering consumer confidence and financial stability. These dynamics underscore a promising outlook for market expansion, propelled by demographic shifts and targeted value propositions.
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Active adult housing caters to the needs of the aging population, including retired people living alone. The hybrid model adopted by senior living facilities offers a blend of independence and support, addressing demands for companionship and care. These communities serve as more than just an old age home, providing a vibrant lifestyle for parents of businessmen..
The aging baby boomer population is the key factor driving the growth of the global market. The aging of the baby boomer population is a major driver of the global retirement community market. Baby boomers are people born between 1946 and 1964 who make up a significant portion of the world's population. As this group ages, they are looking for retirement options that provide a comfortable and secure lifestyle. Senior communities offer a variety of housing options and services for seniors, including independent living, assisted living, and memory care. These communities often offer amenities such as fitness centers, social activities, and health services, making them attractive options for seniors seeking a comfortable and engaging lifestyle in retirement.
Also, the obesity rate among senior citizens is on the rise, which leads to a rise in the number of people who are at risk of disability and chronic diseases. In such cases, it becomes challenging for family members to take care of senior citizens. In this type of situation, the communities are the most suitable options for a comfortable and healthy residence as they offer assisted living options along with certified nursing care. Post-retirement, these people need medical care, which is one of the prominent features of the communities. Thus, there will be an increase in the demand for retirement home services in the forecasted period.
Multi-generational living is the primary trend shaping the global market growth. In addition to the social benefits, multi-generational living can also provide economic benefits. By sharing living expenses and resources, families can save money on housing, utilities, and other expenses. This can be especially important for retirees on fixed incomes who may be facing rising healthcare costs and other financial challenges. The communities that offer multi-generational living typically provide a range of housing options, from apartments and townhouses to single-family homes.
These communities may also offer amenities and services that appeal to both older and younger residents, such as parks, recreational facilities, and social activities. Overall, multi-generational living is a trend that is likely to continue as more retirees seek to maintain social connections and support networks while also managing their healthcare and financial needs, which will increase the market growth and trends during the forecast period.
Low savings of baby boomers is a major challenge impeding the growth of the global market. One of the biggest challenges facing the global retirement community market segment is the low savings of baby boomers. However, many baby boomers do not have enough savings for retirement. There are several reasons why baby boomers are saving less. One reason is that many baby boomers don't make retirement savings a priority. They may have focused on other financial priorities, such as paying off debt or supporting their children`s education.
Additionally, some baby boomers may have experienced a job loss or other financial setbacks that have made it difficult for them to save. The low savings of baby boomers can have a significant impact on the global market as many require significant upfront fees or ongoing monthly payments, which can be challenging for individuals with limited savings. Additionally, some communities may not be able to provide the level of care and amenities that baby boomers are looking for due to budget constraints, which will restrict the growth of the market in focus during the forecast period.
The assisted living facilities segment will account for a major share of the market's growth during the forecast period. The global market for assisted living facilities is expected to grow in the coming years due to the increasing number of seniors worldwide and the growing demand for long-term care options.
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The assisted living facilities segment was valued at USD 982.90 billion in 2018. Assisted living facilities are a segment of the global market that cater to seniors who require some assistance with activities of daily living (ADLs) but do not require round-the-clock medical care. These facilities provide a range of services such as meal preparation, housekeeping, medication management, and personal care assistance to help residents maintain their independence and quality of life. Assisted living facilities are typically designed to provide a home-like environment with private or semi-private living spaces and communal areas for socializing and activities. Many facilities also offer amenities such as fitness centers, libraries, beauty salons, and transportation services to help residents stay active and engaged.
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North America is estimated to contribute 32% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Though the market potential is high in North America, the growth rate of the market in the region will be hindered by affordability issues as many retirees do not have enough retirement funds. For instance, most of the revenue for the nursing care service segment comes from public sources, such as the government in the US, as the monthly expenses for nursing care are high, which will solve the problem of affordability issues as many retirees do not have enough retirement fund, which in turn will drive the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Affinity Living Communities: The company offers retirement communities such as the Aurora Copperleaf community. Also, the company focuses on the development of multi-family and age-restricted communities.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
AlerisLife Inc., American Retirement Homes Inc., British United Provident Association Ltd., Brookdale Senior Living Inc., Enlivant Master Mgmt CO LLC, Erickson Senior Living Management LLC, Front Porch, Genesis Healthcare Inc., HC One Ltd., Honor Technology Inc., Interim HealthCare Inc., Korian, Life Care Companies LLC, Senior Lifestyle, Sienna Senior Living Inc., Sonida Senior Living Inc., Sunrise Senior Living LLC, Village Concepts, and Wickshire Senior Living.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Retirement Home Services Market: Retirement Home Services Market by Service, Application, and Geography - Forecast and Analysis
Senior Living Market: Senior Living Market by Age Group, Service, and Geography - Forecast and Analysis
Aged Care Market: Aged Care Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Australia, Germany, France - Size and Forecast
In the realm of modern living, the dynamics of urban and suburban landscapes are shifting, driven by a multitude of factors. Major cities and suburbs alike are witnessing a surge in population, spurred by the growth in life expectancy and the rise in nuclear families. This demographic evolution translates into increasing medical needs, particularly in non-metro cities, where access to healthcare is paramount. Amidst this landscape, attractive financing options and the availability of land are reshaping real estate markets, especially in metros.
Moreover, within this context, the demands for Continuous Care Homes is on the rise, offering skilled or nursing care to seniors through outright purchases, leases, or rentals, and even hybrid models. These senior living residences cater to lifestyle preferences, emphasizing security and freedom from chores. Notable communities like The Villages epitomize this trend, providing healthcare services alongside outdoor activities. The expansion of facilities reflects the growing senior living market, which is increasingly responsive to the diverse needs and preferences of retired people living alone. Leveraging various touch points and communication channels, senior living marketing endeavors seek to streamline processes and alleviate hassles, offering responsive devices and prospects for enhanced quality of life.
With an aging population and a rise in retired individuals livindemandg alone, the demand for senior living facilities is growing. The hybrid model, blending independent living with care services, meets diverse needs. These facilities serve as more than just an old age home, providing companionship, support, and a sense of community for seniors.
Industry Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.25% |
Market growth 2024-2028 |
USD 394.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.08 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, Germany, China, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Affinity Living Communities, AlerisLife Inc., American Retirement Homes Inc., British United Provident Association Ltd., Brookdale Senior Living Inc., Enlivant Master Mgmt CO LLC, Erickson Senior Living Management LLC, Front Porch, Genesis Healthcare Inc., HC One Ltd., Honor Technology Inc., Interim HealthCare Inc., Korian, Life Care Companies LLC, Senior Lifestyle, Sienna Senior Living Inc., Sonida Senior Living Inc., Sunrise Senior Living LLC, Village Concepts, and Wickshire Senior Living |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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